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NO.  94 


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Author: 

Babcock,  George  De 

Albert 

Title: 

The  Taylor  system  in 
Franklin  management 

Place: 

New  York 

Date: 

1917 


COLUMBIA  UNIVERSITY  LIBRARIES 
PRESERVATION 

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ORIGINAL  MATERIAL  AS  FILMED  •     EXISTING  BIBLIOGRAPHIC  RECORD 


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Babcock,  George  D. 

...  The  Taylor  system  in  Franklin  management,  appli- 
cation and  results,  by  Major  George  D.  Babcock  ...  in 
collaboration  with  Reginald  Trautschold,  m.  e.,  with  a 
foreword  by  Carl  G.  Barth  ...  New  York,  The  JCngineer- 
ing  magazine  company,  1917. 

2  p.  1.,  vii-xx,  245  p.  illus.  (incl.  forms)  fold,  plates,  diagrs.  (part 
fold.)    22"".     (Industrial  management  library) 


1.  Factory  management.    2. .  Efficiency,  Industrial.    3.  Franklin,  H.  H., 
manufacturing  company,  Syracuse.       i.  Trautschold,  Reginald.  jjuiTitle. 

1^4156 
Library  of  Congress  >••*«,    T58.B2 


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Columbia  (Hnitiem'tp 

THE  LIBRARIES 


GRADUATE 

SCHOOL  OF  BUSINESS 

LIBRARY 


I 


INDUSTRIAL  MANAGEMENT  LIBRARY 


THE  TAYLOR  SYSTEM 


IN 


FRANKLIN   MANAGEMENT 

APPLICATION  AND  RESULTS 


BY 

Major  GEORGE  D.  BABCOCK 

PRODUCTION    MANAGER,    H.    H.    FRANKLIN   MANUFACTURINQ   COMPANY 

IN  COLLABORATION  WITH 

REGINALD  TRAUTSCHOLD,  M.E. 


WITH  A  FOREWORD  BY 

CARL  G.  BARTH 

BENIon  MEMBER,   CABL  G.    BARTH   AND  SON 


NEW  YORK 
THE  ENGINEERING  MAGAZINE  COMPANY 

1917 


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Copyright,  1917,  By 
THE  ENGINEERING  MAGAZINE  COMPANY 

New  York 


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TO 

THE   ME]^mRY   OF 
FEEDERICK  WIN5L0W  TAYLOR 


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Scientific  Managemenf  fundamenUd- 
ly    carmsts    of    certain    broad    general 
principles,  a  certain  phihsophy,  which 
can  be  applied  in  many  ways,  .  .  . 
Frederick  Winslow  Taylor. 


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CONTENTS 

PAoa 

Foreword xi 

Preface xv 

Chapter  I.    Factory  Conditions  in  Nineteen  Hun- 
dred AND  Eight  1 

Business  Conditions.  System  of  Management  at 
Plant.  Results  Attained.  Problem  of  Automobile 
Manufacture.  Carl  G.  Barth's  Report  and  Recom- 
mendations. 

Chapter  II.    Investigation  op  the  Taylor  System 9 

Doctor  Taylor's  Writings.  Plants  Operating  Under 
Scientific  Management.  Inter-departmental  Memo- 
randa and  Correspondence.  Visit  to  the  Tabor 
Manufacturing  Company.  The  ''Questionnaire/' 
Extract  from  Doctor  Taylor's  Teachings. 

Chapter  III.    Classification  and  Standardization 31 

Taylor  System  of  Scientific  Management  Defined. 
First  Standards.  Classification  of  Product.  Clas- 
sification of  Methods.  Classification  of  Materials. 
Classification  of  Machines.  Standardization  of  Me- 
chanical Methods.  Standardization  of  Tools.  Clas- 
sification of  Accounts. 

Chapter  IV.    Establishing  Control 47 

Segregation  of  Activities  into  Departments.  Clas- 
sification of  the  Engine.  Arrangement  of  Work  and 
Analytical  Investigations.  Symbols,  Their  Applica- 
tion and  Derivation.  Classification  of  Purchased 
Parts.  Stores  Ledgers.  Storerooms.  Standardiza- 
tion of  Factory  Machinery  and  Fixtures.  Routing 
of  Work  and  Materials.  Machine  Burden  Books. 
Centralization  of  Control.    The  Despatch  Room. 


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CONTENTS 


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Chapter  V.  The  Schedule,  Control  Boards  and  Pneu- 
matic Despatch  Tubes 63 

Plan  of  Manufacture.  Specification  of  Schedule. 
Accelerating  Production  Schedule.  Control  Boards — 
Mechanical  Construction — Equipment — Example  of 
Application  —  Set-ups  —  Movable  Feature.  Central 
Despatch  Room.    Pneumatic  Despatch  Tubes. 

Chapter  VI.    Employment  and  Rate  Fixing 79 

Selection  of  Workmen.  Employment  Manager's  Au- 
thority. Discharges  and  Disciplinary  Measures. 
Court  of  Appeal.  Individualism  and  Group  Action. 
Full  Profit  for  Managerial  Effort.  Retainer  for  Task 
Worker  when  on  Straight  Time  Work.  Deductions 
for  Lates,  Absences  and  Spoiled  Work.  Responsibili- 
ties of  the  Management  and  of  Workers.  Rate  For- 
mula. Fundamental  Base  Rate.  Recompense  for 
Skill  in  More  than  One  Mechanical  Operation.  Re- 
ward for  Years  of  Continuous  Service.  Fixed 
Charges  Rate.  Premiums  Earned.  Standard  Pre- 
mium Task  Time.  Absences  and  Tardiness.  Penal- 
ties for  Spoiled  Work.  Recompense  for  Task  and 
Straight  Time  Work.  Recognition  for  Co-operation 
and  Conduct. 

Chapter  VII.  Organization  Classification 109 

Producing  Division — Planning  (Routing  and  Equip- 
ment, Schedules,  Building  and  Equipment  and  Em- 
ployment)— Executive  (Despatch,  Produce,  Inspec- 
tion, Stores  and  Transportation).  Engineering  Di- 
vision (Research,  Design  and  Inspection).  Purchas- 
ing Division. 

Chapter  VIII.    Changes  in  Product  and  Method 115 

Reduced  Manufacturing  Costs.  Simplification  of 
Product.  Time  Requirements  Established.  Deliver- 
ies Determined.  Elimination  of  Poor  Work.  Im- 
proved Inspection.  Uniformity  in  Quality  of  Prod- 
uct. Old  Method  of  Supervising  Manufacture.  Ma- 
chine-hour Burdens.  Seven  Classes  of  Manufacture. 
Establishment  of  a  High  Class  of  Manufacturing  Ef- 
fort. 


I 


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PAGE 


130 


147 


r> 


CONTENTS 

Chapter  IX.     Changes  which  have  Affected  the 

Men  

Reduced  Turn-over  of  Labor.  Increase  in  Perma- 
nently Employed.  Increased  Wages.  Contentment 
and  Interest  in  Work.  Increased  Knowledge  of  Shop 
Practices  and  Office  Methods.  Shorter  Working 
Hours.  Co-operation  and  Loyalty.  Old  Methods  Re- 
viewed.   Changes  in  the  Purchasing  Department. 

Chapter  X.    The  Results  Graphically  Depicted 

Growth  and  Activities  of  the  Industry.  Production 
and  Employment.  Average  Wages  from  1908  to 
1917.  Decreased  Producing  Hours.  Reduction  in 
Production  Cost.  Object  of  Manufacturing.  Di- 
vision of  *' Benefits.'*  Economic  Considerations. 
'* Equity  Ratios.*'  Expansion  in  1916.  Co-operation 
of  the  Organization. 


Appendix  I.    Wage  Rates  in  the  Franklin  Shops 167 

Fundamental  Base  Rate.  Relative  Cost  of  Living. 
Comparative  Statement  of  Cost.  Recalculation  of 
Workers'  Rating.    Statements  by  Employees. 

Appendix  II.    Examples  in  Application  of  Scientific 

Management  183 

The  Repair  Shop.  The  Small  Parts  Factory.  Plant 
with  Uniform  Manufacture — Control  Board  Opera- 
tion. 

Index 239 


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FOREWORD 

To  those  whose  good  fortune  it  will  be  to  read 
Mr.  Babeock's  exposition  of  the  introduction  and 
development  of,  and  the  results  obtained  by,  the 
Taylor  System  of  Scientific  Management  in  the 
Franklin  plant,  it  will  be  evident  that  the  same  is 
no  small  gratification  to  the  man  whose  privilege 
and  pleasure  it  was  to  start  the  ball  rolling  there, 
and  to  give  Mr.  Babeock  his  first  practical  lessons 
in  Scientific  Management. 

The  Franklin  plant  is,  to  my  knowledge,  the  best 
example  of  what  experience  has  taught  me  to  look 
upon  as  the  only  sure  result-producing  method  of 
going  about  the  development  of  a  system  of  Scien- 
tific Management  in  a  plant.  As  such  it  lies  be- 
tween the  two  extreme  courses  that  are  usually  re- 
sorted to  by  plant  managers;  namely,  the  one  in 
which  some  real  or  pretending  expert  is  hired  to 
spend  all  his  time  at  a  plant  to  **put  the  system 
in";  the  other,  in  which  a  local  man  of  unusual 
ability  is  appointed  to  do  the  same  thing,  after  fit- 


I 


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FOREWORD 


FOREWORD 


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ting  himself  by  the  study  of  the  literature  of  Sci- 
entific Management  and  by  visits  to  other  plants 
which  are  supposed  already  to  be  operating  in  part 
^  or  fully  mider  Scientific  Management. 
V  At  the  Franklin  plant  my  function  was  thus 
practically  only  that  of  an  instructor  and  trainer  of 
a  few  of  their  own  employees,  with  Mr.  Babcock 
as  their  leader,  in  the  principles  and  details  of  the 
Taylor  System.  Hence,  after  Mr.  Babcock  had 
caught  the  spirit,  grasped  the  fundamental  princi- 
ples, and  been  initiated  into  the  general  ways  of 
applying  these  through  a  set  of  physical  mechan- 
isms that  were  the  best  devised  up  to  that  time,  my 
main  usefulness  to  him  and  his  company  were  at 
an  end. 

Since  the  discontinuation  of  my  regular  visits  to 
the  plant,  Mr.  Babcock,  possessed  of  imusual  in- 
genuity and  unbounded  enthusiasm  and  capacity 
for  work,  coupled  with  the  opportunity  afforded 
for  undivided  attention  to  the  particular  problems 
of  the  one  plant,  has  therefore  been  able  to  make 
improvements  and  developments  in  some  of  the 
mechanisms  of  the  system  that  mark  a  distinct  ad- 
vance, not  only  over  an\i;hing  Doctor  Taylor  orig- 
inally had  to  hand  over  to  his  direct  disciples  and 
co-workers,  but  also  over  anything  that  these  have 
been  able  to  do  along  similar  lines,  compelled  as 
they  have  been  to  divide  their  attention,  at  the  same 


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time,  between  several  plants  representing  a  di- 
versity of  products  and  problems. 

It  may  be  well  to  mention  here  that  Doctor  Tay- 
lor himself,  some  fifteen  years  ago,  in  warning  a 
group  of  men  against  mistaking  his  details  and 
mechanisms  for  essentials  as  against  the  principles 
of  which  they  were  merely  an  expression,  made  the 
prediction  that,  ten  years  from  then,  not  a  single 
one  of  those  details  was  likely  to  be  in  existence ; 
and  while  this  has  not  fully  come  to  pass,  it  is  true 
that,  for  instance,  I  myself  have  hardly  left  any  of 
them  untouched,  without,  however,  having  made  a 
single  such  decided  departure  as  Mr.  Babcock  has 
made  in  the  construction  of  his  unique  and  truly 
wonderful  control  boards.  In  connection  with  this, 
I  warn  the  reader,  however,  that  the  same  are  not 
suitable  to  a  diversified  product,  though  eminently 
superior  to  anything  previously  devised  for  the 
same  purpose  and  particularly  so  in  connection 
with  a  one-sided  product  such  as  the  Franklin  car, 
which,  except  for  its  two  or  three  different  styles 
of  body,  is  now  absolutely  a  single  standard  for  one 
or  more  seasons  at  a  time. 

The  failure  to  realize  and  grasp  the  principles  be- 
hind the  details  and  mechanism  of  the  Taylor  sys- 
tem on  the  part  of  a  number  of  its  students  who 
have  attempted  to  practise  as  experts,  has  inevi- 
tably resulted  in  undeservedly  discrediting  the  sys- 


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XIV 


FOREWORD 


teni ;  but  I  also  take  this  opportunity  to  warn  the 
reader,  rather  to  leave  it  entirely  alone  than  to  at- 
tempt its  introduction  without  the  proper  kind  of 
expert  instruction  and  guidance,  and  unless  he  can 
turn  over  to  that  expert  a  man  who  has  at  least 
some  of  Mr.  Babcock's  qualifications,  the  most  es- 
sential of  which  is  the  ability  to  grasp  and  steadily 
keep  in  mind  fundamental  principles,  coupled  with 
great  capacity  for  work  and  details. 

In  Mr.  Babcock's  formula  for  the  determination 
of  a  man's  base  rate,  we  also  have  the  first  attempt 
to  consider  this  matter  from  all  possible  angles, 
with  a  view  to  absolute  justice. 

While  Mr.  Babcock  has  fittingly  dedicated  his 
book  to  Doctor  Taylor,  it  is  to  be  deplored  that  Dr. 
Taylor  did  not  live  to  learn  all  about  what  Mr. 
Babcock  has  done  for  the  furtherance  of  his  life 
work,  though  he  did  live  long  enough  to  learn  that 
the  work  at  the  Franklin  plant  was  proceeding  sat- 
isfactorily under  Mr.  Babcock 's  leadership. 

Carl  G.  Barth. 
November,  1917, 


^T^ 


PREFACE 

Dr.  Frederick  W.  Taylor  thus  established  a  criterion 
by  which  to  judge  and  value  management.  "The  prin- 
cipal object  of  management  should  be  to  secure  the 
maximum  prosperity  for  the  employer,  coupled  with 
the  maximum  prosperity  for  each  employee."  Major 
George  D.  Babcock,  in  "Taylor  System  in  Franklin 
Management,"  describes  step  by  step  the  conversion 
of  an  already  successful  and  well-managed  business 
into  one  of  greatly  increased  activity  under  five  years' 
application  of  the  Taylor  principles  of  management. 
During  this  period,  the  output  of  the  plant  has  in- 
creased several  fold,  production  costs  have  very  ma- 
terially decreased  and  the  workers  have  prospered  to 
the  extent  of  an  average  increase  in  wages  of  some 
sixty  per  cent. 

The  conditions  existing  in  the  Franklin  plant  in 
1908,  the  year  in  which  the  introduction  of  Scientific 
Management  was  first  taken  under  advisement,  are 
ruthlessly  criticised  by  Major  Babcock,  though  they 
were  very  similar  to  those  existing  today  in  many  so- 
called  successful  and  ably  managed  factories  and  far 
more  satisfactory  than  the  conditions  to  be  found  now 
in  the  great  majority  of  our  industries.  In  fact,  so  un- 
essential was  considered  any  change  in  the  methods  of 
Franklin  management  that  over  four  years  were  de- 
voted to  investigations  of  results  secured  in  other 

XV 


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XVI 


PREFACE 


plants  operating  under  Taylor  Systems  before  the  de- 
cision was  finally  arrived  at  to  incorporate  them  into 
the  Franklin  management.  A  comprehensive  sum- 
mary of  the  inquiries  made  during  these  four  years 
of  search  for  irrefutable  evidence  of  the  merits  of  the 
Taylor  System  forms  an  illuminating  introduction  to 
Major  Babcock's  description  of  the  assimilation  by 
the  Franklin  management  of  Doctor  Taylor's  princi- 
ples. 

Doctor  Taylor's  four  great  underlying  principles  of 
management — first,  development  of  a  true  science  of 
management;  second,  scientific  selection  of  workmen; 
third,  scientific  education  and  development  of  work- 
men; and,  fourth,  intimate  friendly  co-operation  be- 
tween the  management  and  the  men — are  then  taken 
up  individually  and  collectively  and  their  practical  ap- 
plication to  the  activities  of  the  Franklin  Company 
described.  The  development  of  the  science  is  traced 
from  the  classification  and  standardization  of  prod- 
uct, methods,  materials,  tools  and  even  of  accounts 
through  the  establishment  of  control,  with  its  divisions 
of  responsibility  and  authority,  the  establishment  of 
the  manufacturing  schedule,  the  centralization  of  the 
various  individual  despatch  rooms  into  one  main  clear- 
ing department,  connected  to  all  parts  of  the  shops 
through  a  system  of  pneumatic  tubes  for  the  convey- 
ance of  all  shop  communications,  etc.,  and  the  intro- 
(  duction  of  the  Control  Boards  to  act  as  guides  for  the 
^  carrying  on  of  all  necessary  acts  in  the  conduct  of  the 
business. 

The  selection  of  the  workmen  and  their  training  are 
taken  up  in  the  chapter  devoted  to  employment  and 
rate  fixing,  and  the  co-operative  features  of  the  man- 
agement, while  traceable  throughout  the  development 


4 


PREFACE 


xvii 


of  the  science  and  selection  and  training  of  the  work- 
ers, are  explained  in  greater  detail  in  the  discussion 
of  the  organization,  which  also  deals  quite  extensively 
with  the  specific  duties  and  responsibilities  of  the  va- 
rious individuals — in  the  shops  as  well  as  in  the  more 
executive  and  technical  departments. 

Thus  disposing  of  the  more  important  managerial 
considerations  through  the  practical  application  of 
Doctor  Taylor's  four  fundamental  principles,*  Major 
Babcock  then  devotes  two  chapters  to  the  changes 
which  have  been  brought  about  from  a  true  apprecia- 
tion of  the  great  truths  of  efficient,  economic  and 
equitable  management.  First,  he  dwells  on  the  changes 
in  product  and  methods,  the  improvements  in  which 
are  indicative  of  the  increased  prosperity  of  the  em- 
ployer and  measure,  therefore,  the  benefit  accruing  to 
the  organization  from  the  new  form  of  management; 
and  second,  he  takes  up  the  changes  which  have  af- 
fected the  men,  the  permanency  in  employment,  in- 
creased wages,  shorter  working  hours,  increased 
knowledge  of  shop  practices  and  office  methods,  and 
the  spirit  of  friendly  co-operation  and  loyalty  which 
has  grown  up  in  the  attitude  of  the  workers  toward 
the  management,  all  indicative  of  increased  prosperity 
to  the  employee. 

*  First  The  development  of  a  science  for  each  element  of  a  man's 
work,  thereby  replacing  the  old  rule-of-thumb  methods. 

Second.  The  aelection  of  the  best  worker  for  each  particular  task 
and  then  training,  teaching  and  developing  the  workman;  in  place  of 
the  former  practice  of  allowing  the  worker  to  select  his  own  task  and 
train  himself  as  best  he  could. 

Third.  The  development  of  a  spirit  of  hearty  co-operation  between 
the  management  and  the  men  in  the  carrying  on  of  the  activities  in 
accordance  with  the  principles  of  the  developed  science. 

Fourth.  The  division  of  the  work  in  almost  equal  shares  between 
the  management  and  the  workers,  each  department  taking  over  the  work 
for  which  it  is  the  better  fitted;  instead  of  the  former  condition,  in 
Which  almost  all  of  the  worW  and  the  greater  part  of  the  responsibil- 
ity were  thrown  on  the  men. 


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A  final  chapter  presents  in  graphic  form  the  growth 
and  activity  of  the  plant  under  the  new  management, 
the  improvements  which  have  resulted  and  the  bene- 
fits realized  by  the  organization,  from  the  viewpoint 
of  both  employer  and  employee.  The  remarkable  con- 
stancy in  management  is  strikingly  brought  out  in  the 
equity  with  which  the  benefits  resulting  from  the  de- 
velopment of  the  business  have  been  apportioned  so 
as  to  represent  increased  prosperity  for  each  employee, 
as  well  as  for  the  employer. 

This  last  chapter  also  further  brings  out  the  sound- 
ness of  the  principles  underlying  Scientific  Manage- 
ment by  showing  how  it  has  been  possible  completely 
to  wind  up  a  successful  business  devoted  to  the  manu- 
facture of  one  kind  of  product  and  successfully  to  start 
a  very  much  larger  business  devoted  to  the  manufac- 
ture of  another  product  which  required  new  designs, 
new  tools,  new  equipment,  new  methods,  a  very  large 
increase  in  the  number  of  workers  with  workmen  who 
manifestly  could  not  be  familiar  with  the  new  work 
nor  possessed  of  that  skill  acquired  by  the  men  trained 
in  the  economical  manufacture  of  the  older  product, 
and  with  an  ever  increasing  volume  of  output.     And 
this  all  within  a  period  of  a  few  months  and  without 
interruption  to  the  steadily  growing  prosperity  of  the 
workers  or  to  the  expectancy  of  greatly  increased  pros- 
perity on  the  part  of  the  organization  through  the  ma- 
terial expansion. 

The  appendixes,  which  are  of  quite  as  great  inter- 
est as  the  book  proper,  Major  Babcock  employs  for 
the  consideration  of  certain  details,  the  working  out 
of  which  has  been  in  large  measure  instrumental  in 
the  attainment  of  the  very  gratifying  results  at  the 
Franklin  plant.    In  the  first  appendix,  the  determina- 


nt 


PREFACE 


XIX 


tion  of  the  wage  rates  in  the  Franklin  shops  are  dis- 
cussed— the  fundamental  base  rate,  the  allowances 
made  for  increased  cost  of  living,  the  rewards  for  ac- 
quired skill,  the  loyalty  developed  through  years  of 
continuous  employment,  the  valuable  knowledge  gained 
in  methods  of  manufacture  and  the  penalties  which 
are  imposed  for  tardiness  in  reporting  for  work,  ab- 
sences, spoiled  work  and  acts  detrimental  to  the  inter- 
ests of  the  organization  are  all  taken  into  consideration 
in  determining  the  wage  rate  of  the  worker.  Each 
one  of  the  affecting  factors  is  valued  and  equated  in 
a  comprehensive  formula  by  which  the  wage  rate  for 
each  workman  is  ascertained  each  three  months.  The 
justice  of  this  scientific  determination  of  a  man's  wage 
rate  has  been  established  beyond  question  of  reason- 
able doubt  by  the  whole-hearted  co-operation,  content- 
ment and  satisfaction  on  the  part  of  the  men  during  a 
period  in  which  the  cost  of  production  has  decreased 
as  steadily  as  the  wages  of  the  workers  have  increased. 
In  the  second  appendix,  managerial  schemes  for  the 
application  of  Scientific  Management  to  a  repair  shop, 
a  small  parts  factory  and  to  a  plant  with  uniform 
manufacture  under  Control  Board  operation  are  dis- 
cussed in  detail.  All  necessary  acts  for  carrying  on 
in  an  economical  manner  the  conduct  of  each  class  of 
industry  are  described,  with  an  explanation  of  the 
forms,  order  blanks,  etc.,  which  simplify  and  control 
the  managerial  acts,  the  authority  and  proper  respon- 
sibilities of  each  department  are  briefly  outlined  and 
also,  as  far  as  possible,  the  particular  duties  of  each 
individual,  managerial  or  clerical.  Thus  the  experi- 
ence gained  by  Major  Babcock  is  made  available  for 
a  very  large  variety  of  manufacturing  enterprises  for 
which  the  managerial  control  as  developed  for  an  in- 

2 


■  'i 


I 

11 


m 


XX 


PREFACE 


tricate  product  such  as  that  built  by  the  H.  H.  Frank- 
lin Manufacturing  Company  might  be  too  complex. 

Doctor  Taylor's  eminent  co-worker,  Henry  L.  Gantt, 
has  prophesied  the  failure  of  anyone  attempting  to 
introduce  Scientific  Management  according  to  any  set 
rules  and  by  the  use  of  established  forms  and  blanks, 
without  a  thorough  comprehension  of  the  principles 
upon  which  it  is  based,  and  Doctor  Taylor  himself 
stated  that  Scientific  Management  consisted  fundamen- 
tally of  certain  broad  general  principles  which  could 
be  applied  in  many  ways.  Excellent  and  deserving  of 
attention  are  these  warnings,  but  the  careful  reader  of 
"Taylor  System  in  Franklin  Management"  should  be 
able  to  approach  the  introduction  of  Scientific  Man- 
agement into  almost  any  plant,  not  only  with  a  thor- 
ough appreciation  of  the  principles  upon  which  it  is 
based,  but — aided  by  Major  Babcock's  comprehensive 
description  of  applications  of  tliese  principles  to  fac- 
tory management— with  a  very  clear  idea  of  how  the 
broad  general  principles  should  be  applied. 

Major  Babcock's  very  marked  success  in  the  mana- 
gerial line  has  won  for  him  signal  recognition,  for,  be- 
fore the  appearance  of  this  volume,  he  was  called  to 
the  colors  in  France  to  introduce  his  principles  in  the 
Ordnance  Department  of  the  United  States  Army. 

Eeginald  Trautschold. 
November,  1917. 


k 


THE  TAYLOR  SYSTEM 

IN 

FRANKLIN  MANAGEMENT 
Chapter  I 

factoey  conditions  in  nineteen 
hundred  and  eight 

^T^HE  year  1908  marked  a  critical  period  in  the 
-*•  H.  H.  Franklin  Manufacturing  Company's  de- 
velopment, for  it  was  in  that  year  we  commenced  the 
investigations  which  have  culminated  in  our  present 
system  of  shop  management.  The  business  slump 
of  1907,  which  had  been  acutely  felt  by  the  whole 
automobile  industry,  had  been  successfully  weathered 
by  us,  and  a  decided  reaction  had  commenced  with 
the  spring  of  1908.  There  was  a  steady  increase  in 
business,  but  accompanied  by  a  trying  period  of  read- 
justment. Orders  and  cancellations  followed  each 
other  with  startling  rapidity,  though  the  net  result  in- 
variably proved  to  be  a  gain.  A  similar  experience 
was  quite  probably  common  to  many,  if  not  most,  suc- 
cessful automobile  manufacturers,  and  the  vital  prob- 
lem confronting  us  became  one  of  production,  rather 
than  one  of  marketing  our  product. 

At  that  time  our  factories  contained  some  two  hun- 
dred thousand  square  feet  of  floor  area,  the  result  of 
a  steady  and  healthy  business  growth  of  six  years. 


■  t 


■4ii 


U\ 


( 


I 


A  THE    TAYLOR    SYSTEM 

Production  rarely  exceeded  one  hundred  cars  i)er 
month,  and  averaged  somewhat  less.  The  factories 
and  equipment  were  modern  in  every  respect,  and  we 
were  not  burdened  with  obsolete  methods.  Briefly, 
we  were  what  was  considered  then,  and  would  be  so 
considered  today,,  an  example  of  a  thriving  business 
in  a  growing  and  important  industry. 

The  factory  management,  which  was  generally  ac- 
cepted as  up  to  date  and  well  developed,  was  about 
as  follows:  The  management  ordered  the  quantity, 
the  form,  and  the  date  the  product  was  to  be  finished. 
Through  the  engineering  department  the  detailed  part 
forms,  the  kind  of  material,  and  the  combination  of 
assemblies  were  specified.  The  foreman  and  superin- 
tendent planned  for  the  time  and  duration  of  opera- 
tions, the  kind  of  machinery  and  tools,  and  the  general 
operating  method.  They  also  selected  and  rated  the 
workmen,  and  supervised  their  attendance. 

From  the  general  car  schedules,  detailed  schedules 
were  made  and  delivered  to  the  foreman.  These  were 
merely  copies  of  the  original  schedule  of  finished  prod- 
uct, but  were  dated  earlier  by  one,  two,  three,  or  four 
months.  From  this  dated  schedule,  any  foreman  was 
obliged  to  plan  the  procedure  for  each  mechanical 
operation.  With  these  conditions,  it  is  evident  that 
the  scheduling  eventually  rested  in  the  hands  of  the 
stock  chasers  who  represented  the  assembly  floors. 

Foremen  assigned  individual  jobs  to  the  workmen, 
supervised  them  at  their  work,  and  discharged  them 
without  appeal  on  any  pretext.  They  further  ordered 
repairs  for  machines  and  equipment,  and  selected  and 
maintained  tools  and  supplies. 

The  foremen  and  workmen  decided  mechanical 
methods  to  pursue  at  the  work,  the  number  of  pieces 


FACTORY   CONDITIONS   IN   1908  3 

to  start  on  each  operation,  and  the  time  in  which  the 
work  could  be  applied.  The  'grime  resyonsihility 
rested  on  the  workman,  with  the  foreman  as  a  close 
second.  This  is  evidenced  by  the  considerable  work- 
man labor  turnover  on  the  charge  of  "unsatisfactory 
work,"  while  there  was  very  little  change  in  foremen. 

The  result  of  this,  as  we  now  see,  could  hardly  be 
unexpected.  The  plan  of  dual  responsibility  showed 
the  usual  weakness  of  indecision  in  emergency,  lack  of 
correction  for  faults  due  to  uncertain  responsibility, 
and  doubt  and  distrust  due  to  lack  of  knowledge. 
Opinion  was  pitted  against  opinion,  and  a  general  feel- 
ing of  indefiniteness  permeated  the  factory. 

Dates  called  for  by  the  management  were  not  kept 
by  the  foremen,  primarily  because  of  the  uncertainty 
and  irregularity  in  the  scheduling  of  operations.  Ma- 
terial shortages  were  frequent.  Tools  were  unsuitable 
and  lacking.  Machines  were  not  best  suited  to  the 
purpose  and  were  often  in  poor  repair.  Neither  tools 
nor  machines  were  standardized,  and  work  could  not 
c  be  exchanged  rapidly  from  one  to  another.  Shortages 
of  parts  were  constant  and  serious,  and  caused  a  very 
high  ratio  of  preparation  to  operating  time;  through 
this  inefficiency  a  resultant  high  peak  of  workman 
effort  was  caused. 

The  change  in  the  number  of  employees  was  fre- 
quent. A  large  percentage  of  employees  were  poorly 
trained  and  irregular  in  attendance.  The  manage- 
ment, the  foremen,  and  the  workmen  were  contin- 
uously at  odds  over  results.  The  purchasing  depart- 
ment was  forever  rushing  or  holding  up  orders,  and, 
of  course,  the  people  from  whom  we  purchased  suf- 
fered the  same  experience. 

Fluctuations  in  labor  employment  varied  from  110 


4 


ij 


I 


I 


< 


;4 


fi 


4  THE   TAYLOR    SYSTEM 

to  200  per  cent  through  the  working  year.  Labor  turn- 
over, measured  by  the  number  of  new  men  employed 
to  maintain  the  force,  was  about  four  and  one-quarter 
times,  that  is,  approximately  four  and  a  quarter  men 
were  employed  to  maintain  a  stationary  payroll. 

The  problem  of  automobile  manufacture  was  then, 
and  is  now,  quite  different  from  that  of  miscellaneous 
manufacture.  No  effort  leading  up  to  the  product  can 
be  credited  to  the  company  finance  by  sale  if  any  one 
element  is  lacking.  It  is  a  big  problem  of  coordina- 
tion of  industrial  activity. 

The  finished  units  are  relatively  limited  in  quan- 
tity. The  demand  is  seasonable,  and  the  characteris- 
tic designs  from  the  purchaser  standpoint  vary  in 
accordance  with  his  opinions.  That  is,  the  design  of 
a  motor  car  is  more  or  less  dependent  upon  "style." 
The  completed  unit  is  a  large  assembly  which  is  com- 
posed of  sub-assemblies  of  unit  parts,  most  of  which 
must  be  tested  for  strength,  noise,  and  perfection  of 
operation.  The  parts  differ  radically  in  material  form 
and  requirement  of  manufacturing  method.  The  pe- 
riod of  planning  and  work  for  the  output  on  account 
of  this  will  range  from  300  to  150  working  days.  The 
product  in  service  is  subjected  to  extraordinary  ex- 
posure, not  only  to  the  elements,  but  also  to  strains 
arising  from  operation. 

Schedules  of  finished  output  were  set  for  a  long 
time  in  advance,  and  were  reasonably  adhered  to. 
Changes  in  design  were  frequent,  as  could  be  expected 
for  a  new  and  developing  product.  But  with  sched- 
ules and  designs  at  hand,  the  output  had  a  most  ex- 
asperating way  of  going  up  and  down.  Cars  could 
not  be  obtained  when  they  were  wanted,  but  were 
plentiful  when  not  wanted.    Of  course,  sales  were  lost. 


FACTORY   CONDITIONS   IN   1908 


'W^ 


and  partly  finished  product  was  cancelled  and 
scrapped.  The  employment  of  labor  followed  the  rise 
and  fall  of  the  output  curve.  Wage  increases  were 
sometimes  granted  on  request.  Costs  were  high,  and 
consequently  the  sale  prices  were  higher. 

The  conditions  imposed  upon  the  shops  at  that  time 
were  no  different  than  now.  Schedules  were  as  sure, 
and  for  as  long  a  time,  and  designs  were  prepared  in 
time  then  as  now.  Our  industry  was,  compared  with 
the  progress  made  at  that  time  in  shop  management, 
highly  efiicient.  Beyond  all  else,  we  were  progressive. 
Our  problem  was  then,  as  it  is  of  many  manufactur- 
ers today,  the  proper  consideration  of  rapid  produc- 
tion from  first  part  to  finished  product;  handling  of 
sales  on  a  varied  schedule,  but  as  uniform  as  con- 
sistent with  economy;  conservation  of  the  capital  in- 
vestment and  the  maintenance  of  a  low  stock  of 
purchased  material  because  of  the  variety,  value  and 
probable  changes  caused  by  public  opinion  and  de- 
mand. 

Prompted  more  by  interest  and  desire  than  for  any 
real  need,  the  Franklin  management  decided  to  in- 
vestigate the  Taylor  system  of  scientific  shop  man- 
agement, which  at  that  time  was  practically  untried 
except  by  Dr.  F.  W.  Taylor  and  a  few  close  friends 
in  sympathy  with  him.  Doctor  Taylor  was  consulted 
as  to  the  probability  of  success  in  applying  scientific 
management  to  automobile  factory  control.  His  an- 
swer was  forceful  and  direct — that  it  could  not  fail  if 
(and  this  is  fundamental)  the  management  assumed 
its  responsibilities.  Now  this  was  a  poser.  Like  all 
other  managers,  we  thought  we  did  assume  our  re- 
sponsibilities. It  required  five  years  for  us  to  learn 
what  he  meant. 


•# 


O  THE   TAYLOR    SYSTEM 

Carl  G.  Barth,  one  of  Doctor  Taylor's  closest  asso- 
ciates, made  a  careful  study  of  our  factory,  and  in  his 
report  advised  that  we  had  the  possibility  of  getting 
the  Taylor  System  installed  for  less  money  and  in  a 
shorter  time  than  any  concern  he  had  previously  dealt 
with.  His  reasons  for  this  belief  he  enumerated  as 
follows: 

"1.  Because  of  the  fact  that  the  suggestion  to  in- 
stall  the  system  comes  from  those  actively  engaged 
in  running  the  works  and  not  primarily  from  the 
Board  of  Directors.  This  is  a  guarantee  that  you  will 
do  all  you  can  to  help  get  it  in  in  the  shortest  possible 
time  and  as  economically  as  possible ;  not  only  for  its 
own  sake,  but  also  because  you  would  be  blamed  for 
having  recommended  going  into  the  matter  if  we  fail 
either  temporarily  or  permanently. 

"2.  Because  your  shop  is  a  modern  one  in  every  re- 
spect, and  will  require  a  minimum  of  expense  for 
adapting  its  machinery  to  the  work. 

"3.  Because  you  have  most  excellent  drawings  of 
your  product ;  few  changes,  if  any,  will  be  required  to 
make  them  in  every  respect  as  good  as  the  best  I  have 
ever  met  with. 

"4.  Because  your  product  is  of  a  more  limited  va- 
riety than  any  manufacture  I  have  met,  and  will  cost 
but  little  to  symbolize  in  accordance  with  our  system 
and  at  a  minimum  for  time  study  and  rate  setting. 

"5.  Because  you  have  already  collected  the  greater 
part  of  the  information  needed  for  the  routing  of  this 
product  through  your  works  in  accordance  with  our 
methods. 

"6.  Because  you  have  already  a  system  of  inspec- 
tion of  this  product  and,  best  of  all,  a  special  inspec- 
tion room  to  which  part,  at  least,  of  the  product  is 


1^ 


FACTORY   CONDITIONS   IN  1908  7 

actually  sent.    This  can  readily  be  lined  up  with  our 
way  of  handling  the  inspection. 

"7.  Because  you  have  a  good  storeroom  for  gen- 
eral supplies  and  good  methods  for  keeping  track  of 
them  which  can  easily  be  switched  over  to  our  wav  of 
handling.  However,  I  anticipate  considerable  diffi- 
culties with  all  the  finished  parts  and  supplies  you  have 
scattered  about  the  factory  in  various  ways,  for  all 
such  stuff  must  be  absolutely  inaccessible  to  workman 
until  finally  delivered  by  the  storekeeper  for  use  on 
definite  manufacturing  orders,  or  directly  for  ship- 
ment. 

"8.  Because  you  will  not  have  to  build  a  planning 
room,  as  your  present  shop  office  is  large  enough  to 
be  used  for  this  purpose. 

**9.  Because  you  have  in  Mr. a  man  who 

can  readily  be  released  from  all  other  work  and  can 
give  his  whole  attention  to  learning  the  work  for  the 
system,  and  be  its  guardian  and  exponent  when  fully 
installed. 

"In  view  of  the  foregoing,  I  fully  believe  that  the 
system  can  be  installed  in  your  works  in  much  less 
time  than  I  suggested  in  my  first  letter  to  you  before 
I  visited  your  plant — say  anywhere  from  twenty-one 
months  to  two  and  one-half  years — with  less  of  my 
time  than  ten  days  a  month  during  the  latter  part  of 
the  time. 

"Therefore,  I  estimate,  the  entire  cost  to  you  for 
installing  the  Taylor  system  of  management  would  be 
composed  of  the  following  items: 

My  personal  services. 

Other  specially  hired  men  to  assist  in  the  instal- 
lation of  the  system — a  few  of  them  only  to  re- 
main permanently  and,  therefore,  chargeable  to 


I 


I 


8  THE   TAYLOR   SYSTEM 

the  installation  of  the  system  for,  say,  another 
nine  months  or  a  year. 

New  printed  forms. 

Special  fixtures  and  apparatus  for  the  planning 
room. 

Eearrangement  and  reorganization  of  the  tool 
room  —  including  stamping  of  symbols  on  all 
tools,  etc. 

Alterations  to  the  general  supply  room — prop- 
erly including  the  accounting  and  tagging,  etc., 
of  materials  now  scattered  throughout  the  shop. 
Additional   foremen   for,    say,    four   to    eight 
months. 

A  special  machine  for  grinding  lathe  and  planer 
tools  and,  perhaps,  for  boring  cutters. 

Additional  small  tools  of  all  kinds  for  emer- 
gency purposes. 
Ee-speeding  and  other  alterations  to  machines. 
"The  last  three  items  above  are  good  investments 
under  all  conditions  and  are  hardly  chargeable  to  the 
installation:  of  the  system,  but  by  it  they  are  definitely 
shown  to  be  highly  desirable. 

"These  investments  would,  of  course,  begin  to  affect 
the  cost  reductions  and  other  substantial  savings  long 
before  the  work  is  actually  completed." 

It  requires  an  acquaintance  with  Mr.  Barth  to  ap- 
preciate fully  the  value  of  his  report.  I  have  seen 
men  who  talked  little  and  said  much,  but  never  a  man 
who  talked  so  much  and  never  wasted  a  word.  His 
life  is  full  of  facts,  and  his  words  are  freed  from 
husks.  Some  years  later  Mr.  Barth  became  our  guide 
and  we  never  went  astray. 


I -3 


Chapter  II 
INVESTIGATION   OF   THE   TAYLOR   SYSTEM 

MpHERE  are  many  modern  plans  of  industrial  man- 
-■•  agement  which  would  be  successful  if  introduced 
at  the  beginning  of  an  industry.  To  brace  up  old 
methods,  long  in  practice,  for  new  ones  to  be  intro- 
duced, requires  a  knowledge  of  business  affairs  quite 
beyond  the  capacity  of  many  of  the  much-heralded 
"Efficiency  Engineers."  Happily,  however,  many  rep- 
resentatives of  modern  methods  are  exceptionally 
broad  and  well  trained.  The  problem  which  con- 
fronted the  Franklin  management  was  to  pick  out 
from  those  available  a  representative  of  satisfying 
personality  and  one  whose  methods  could  command 
confidence. 

The  direction  of  our  investigation  was  in  two  fields 
— the  writings  of  Doctor  Taylor  and  his  associates, 
and  the  industries  in  which  particular  application  of 
these  investigations  had  been  made.  The  literature 
on  this  subject  seemed  at  that  time  to  be  limited  to 
two  papers  presented  before  the  American  Society  of 
Mechanical  Engineers  by  Doctor  Taylor;  the  one, 
"The  Art  of  Cutting  Metals,"  the  other,  "Shop  Man- 
agement"—"The  Art  of  Cutting  Metals"  being  his 
presidential  address. 

Through  correspondence  with  Doctor  Taylor  we 
learned  that  his  principles  of  Scientific  Management 
could  be  found  in  operation  at  the  Link-Belt  Engineer- 

9 


1 


1 


10 


THE   TAYLOR   SYSTEM 


ing  Company  of  Philadelphia  and  Chicago;  at  the 
Tabor  Manufacturing  Company  of  Philadelphia;  and 
at  the  Yale  &  Towne  Manufacturing  Company  at 
Stamford,  Conn.  In  the  Link-Belt  Engineering  and 
in  the  Yale  &  Towne  plants  modifications  of  Doctor 
Taylor's  exact  mechanical  process  had  been  introduced 
by  the  respective  managements.  At  the  Tabor  Manu- 
facturing Company,  not  only  the  principles,  but  the 
exact  procedure  were  as  established  under  Doctor 
Taylor's  personal  directions. 

Representatives  of  our  organization  were  most 
courteously  entertained  at  each  of  the  above  places, 
but  at  the  Tabor  Manufacturing  Company  only  was 
an  exhaustive  study  made.  During  the  time  between 
our  visits  of  inspection  a  considerable  amount  of  cor- 
respondence was  carried  on  between  ourselves  and 
Doctor  Taylor  and  Mr.  Barth.  Our  impressions 
gleaned  in  this  way  are  shown  by  the  following  com- 
ments and  extracts  from  the  original  inter-departmen- 
tal memoranda  and  correspondence: 

We  found  that  Doctor  Taylor's  investigations  had 
definitely  established  the  fact  that  a  time  limit  could 
be  accurately  set  on  a  piece  of  work  before  it  was 
given  to  the  shop ;  the  idea  being  that  if  such  a  rela- 
tion could,  beyond  any  question  of  a  doubt,  be  ac- 
curately and  scientifically  established,  the  control  of 
the  shop  could  be  taken  from  the  somewhat  uncertain 
hands  of  various  foremen  and  concentrated  in  one 
highly  efficient  center,  which  would  do  all  the  planning 
and  directing.  This  would  leave  to  the  foreman  only 
the  work  of 

(a)  Carrying  out  the  orders  given, 

(b)  Maintaining  discipline, 

(c)  Setting  up  complicated  or  particular  jobs, 


INVESTIGATION    OF   THE   TAYLOR   SYSTEM 


11 


(d)  Giving  any  legitimate  aid  to  workmen,  and 

(e)  Providing  that  all  stock  and  tools  for  the  next 
job  to  be  undertaken  by  the  workman  were  readv  be- 
fore  the  completion  of  the  job  on  which  the  workman 
was  engaged. 

"If  this  control  of  the  planning  can  be  removed,  as 
it  now  seems  possible,  from  the  foremen,  one  imme- 
diate advantage  is  gained.  We  are  enabled  to  dis- 
pense with  the  need  of  thoroughly  efficient  foremen, 
at  each  point,  who  are  hard  to  get  at  reasonable  sal- 
aries, and  are  thereby  enabled  to  pay  one  thoroughly 
efficient  man  a  salary  commensurate  with  his  ability 
and  sufficient  to  retain  him. 

"At  this  time  it  might  seem  that  with  a  few  fore- 
men only  the  advantage  named  is  not  apparent,  but 
it  does  seem  that  where  a  considerable  number  of  fore- 
men are  needed  the  saving  made  will  undoubtedly  more 
than  equal  the  salary  of  the  one  thoroughly  efficient 
man.  In  other  words,  a  sufficient  salary  can  be  paid  for 
the  one  man  to  interest  a  trained  engineer,  whereas  it 
would  not  be  possible  to  interest  trained  engineers  for 
each  foreman's  position,  as  the  position  would  not  be 
agreeable  even  if  the  salary  was. 

"Under  this  system  a  workman  is  given  a  definite 
task  to  be  accomplished  in  a  definite  time  in  a  definite 
manner,  and  for  which  he  will  receive  a  definite 
amount  known  by  him  before  starting  the  job.  If, 
however,  he  does  not  completely  fulfill  all  of  the  above 
conditions,  he  is  penalized  by  receiving  an  amount  less 
than  that  which  he  would  have  received  had  he  accom- 
plished what  was  laid  out.  Since  the  rate  of  pay,  if 
the  above  task  is  accomplished,  is  considerably  above 
the  average  rate  for  similar  work,  any  penalty  for 


'i! 


12 


THE  TAYLOR  SYSTEM 


III 


m 


k 


I 


non-accomplishment  will  not  reduce  the  average  earn.'' 
ing  below  that  prevailing  in  the  class. 

"To  secure  all  the  advantages  possible  adverse  shop 
conditions  cannot  be  allowed  and  must  be  eliminated. 
This  of  itself  establishes  a  certain  economy. 

"Under  this  system  a  workman  is  not  only  told  in 
detail  how  to  do  a  job,  but  he  is  also  furnished  with 
everything  necessary  to  accomplish  it.  This  means 
that  he  must  be  furnished  with  stock,  sharpened  tools, 
and  proper  jigs,  and  he  must  lose  no  time  because  of 
improper  appliances.  In  other  words,  all  things  must 
be  in  the  best  possible  condition. 

"This  is,  in  a  way,  the  premium  system,  inasmuch 
as  a  definite  time  is  established;  but  it  differs  from 
the  premium  system  in  that  an  exact  way  is  laid  out, 
and  also  in  that  a  penalty  is  provided  in  case  the  in- 
structions given  are  not  fully  followed. 

"We  are  informed  that  in  the  few  shops  that  are  at 
present  using  this  system  the  men  are  not  antagonis- 
tic to  the  system,  because  by  it  their  wages  increase 
under  clearly  defined  responsibilities. 

"To  establish  this  system,  the  principal  things  to 
be  done  are: 

/  1.  The  preparation  and  maintenance  of  each 
tool  in  the  best  possible  condition ; 

2.  The  standardization  of  feeds  and  speeds  on 
all  similar  machines; 

3.  The  providing  of  tool  rooms  with  equipment 
/        of  tools  and  jigs; 

4.  The  mechanical  operation  of  all  jobs; 

5.  The  establishment  of  standards,  as  for  stock; 

6.  The  settling  of  a  definite  operating  time  for 
each  part  made. 

"Once  a  rate  of  time  and  pay  has  been  definitely  es- 


II 


INVESTIGATION    OF   THE   TAYLOE   SYSTEM 


13 


tablished  under  this  system  it  is  never  changed,  un- 
less the  method  of  doing  work  is  changed  by  the  man- 
agement. The  rate  of  time  is  set  so  as  to  allow  for 
reasonable  variation  by  the  workman ;  that  is,  it  does 
not  set  an  ideal  rate,  but  rather  sets  a  practical  rate 
which  can  be  attained  by  careful  and  industrious 
work.  The  methods  can  be  established  as  slowly  as 
desired. 

"The  seeming  advantages  of  this  system  are: 
^  A.  The  complete  control  of  the  shop  is  removed 
from  the  foreman, 
^  B.  The  need  of  prodding  workmen  is  removed, 

C.  Labor  results  alone  are  paid  for, 

D.  Cost  is  decreased, 

E.  Output  is  increased, 
^          F.  Quality  is  increased, 

G.  Each  piece  costs  a  definite  amount, 
H.  The  rate  of  pay  is  definitely  and  scientific- 
ally fixed, 

N  I.  The  amount  paid  for  spoiled  work  is  de- 
creased, 

J.  Cost  keeping  is  simplified, 

K.  Definite  and  detail  plans  are  given  each 
foreman, 

L.  The  Production  Department  is  given  a 
chance  to  produce— something  that  heretofore  has 
not  existed, 

-  M.  More  accurate  keeping  of  promises  is  made 
possible,  hence,  the  getting  out  of  work  on  time." 

As  typical  of  our  difficulty  in  coming  to  a  final  de- 
cision, our  memorandum  shortly  preceding  our  visit 
to  the  Tabor  Manufacturing  Companj^  can  well  be 
presented : 


14 


THE   TAYLOR   SYSTEM 


m 


t 


"In  general,  we  believe  that  we  are  ready  to  rec- 
ommend the  adoption  of  the  system,  for  in  a  great 
many  points  it  is  our  opinion  that  the  Taylor  System 
only  requires  what  undoubtedly  should  be  done  in 
every  well-regulated  shop.  This  refers  principally  to 
having  all  machines  and  tools  in  the  best  possible  con- 
dition; the  running  of  all  machine  tools  at  the  most 
economical  speeds;  the  provision  of  stock  and  tools 
ready  and  on  the  floor  ahead  of  the  workman;  the 
supplying  of  workman  with  all  that  he  can  possibly 
need,  either  as  regards  instructions  or  tools;  the  tak- 
ing away  of  the  planning  from  a  number  of  foremen 
and  concentrating  it  in  one  place.  On  the  other  hand, 
the  installation  of  this  system  would  mean  that  all 
concerned  with  a  manufacturing  end  would  have  a 
heavy  burden  to  carry  for  probably  two  or  three  years. 
There  would  be  many  vexatious  problems  to  solve,  and 
the  putting  of  this  system  in  the  factory  would  un- 
doubtedly have  its  effect  on  the  Accounting,  Engineer- 
ing, and  Sundry  Departments,  in  that  the  systems  of 
numbering  and  recording  drawings  would  undoubtedly 
have  to  be  changed. 

"Were  we  to  start  a  new  business,  we  would  adopt 
the  Taylor  System.  However,  in  changing  a  plant 
over,  which  is  already  running  with  more  or  less  sys- 
tem and  more  or  less  satisfactorily,  there  are  many 
questions  which  must  be  considered.  There  is  prob- 
ably no  doubt  but  that  for  a  time  production  might  be 
somewhat  hindered,  although  the  aim  would  be  not  to 
have  this  happen,  inasmuch  as  the  system  would  nec- 
essarily have  to  be  installed  with  the  idea  of  prevent- 
ing this.  Then,  too,  there  is  a  considerable  expendi- 
ture to  be  made  which  must  be  fully  considered  and 
realized. 


INVESTIGATION    OF    THE    TAYLOR   SYSTEM 


15 


•    "If  it  should  be  decided  to  adopt  this  system,  our 
minds  must  be  made  up  to  carry  it  through,  else  the 
major  part  of  the  money  expended  will,  in  all  prob- 
ability, be  thrown  away.    There  is  probably  no  doubt 
that  the  Taylor  System  is  scientific.     We  understand 
that  the  privilege  of  going  over  their  plant  would  be 
extended  to  us  by  the  Tabor  Manufacturing  Company 
of  Philadelphia,  and  we  believe  that  they  would  also 
give  us  some  actual  figures  taken  from  their  books 
which  would  tend  to  show  whether  or  not  the  system 
was  a  success.     This  information  would  be  of  ines- 
timable value  in  deciding  whether  or  not  the  system 
would  be  installed.    If  the  Tabor  Company  can  show 
an  additional  profit  in  their  business  which  can  be 
traced  entirely  to  the  Taylor  System,  and  more  than 
balances  the  money  expended;  can  show  a  reduction  in 
the  labor  cost  of  manufacturing  the  same  articles ;  can 
show  a  decrease  in  the  time  required  to  produce  that 
article,  or,  in  other  words,  increased  capacity  due  to 
increased  efficiency ;  and  can  also  show  that  their  non- 
productive labor  has  decreased  in  relation  to  their  out- 
put, we  should  not  hesitate  to  adopt  it. 

"This  plan  should  not  be  started  hurriedly,  and  cer- 
tainly not  until  we  have  full  opportunity  to  investi- 
gate or  ask  for  such  information  as  may  be  desired, 
thus  reaching  a  conclusion  entirely  satisfactory  to  our- 
selves. In  any  event,  as  before  mentioned,  we  realize 
that  while  this  system  would  necessarily  have  to  be 
installed  by  an  outside  individual,  and  while  a  large 
amount  of  hard  work  would  fall  upon  that  one,  still 
not  all  the  hard  work,  by  any  means,  would  come  on 
the  person  installing  the  system;  for  it  would  also 
mean  a  tremendous  amount  of  hard  work  for  those  con- 
nected with  the  manufacturing  end  to  enforce  and  carry 


■  -  * '. 


iff 

IBP 


f 


16 


THE    TAYLOR    SYSTEM 


out  this  system,  because  any  new  thing,  no  matter  what 
it  is,  which  tends  to  give  the  company  better  control  is 
beset  with  more  or  less  obstacles.  These  would,  of 
course,  have  to  be  beaten  down  and  surmounted. 

"As  before  stated,  we  do  not  hesitate  on  account  of 
the  work.  In  fact,  our  hesitation,  if  so  it  might  be 
called,  is  caused  by  our  desire  to  render  a  perfectly 
true  and  unbiased  statement,  not  the  least  bit  colored 
for  or  against.  We  have  written  to  Mr.  Barth.  Our 
letter  and  his  answer  follow : 

"  Tour  report  of  the  estimate  of  cost  of  installation 
of  the  Taylor  System  in  our  shop  was  received  and  con- 
sidered. A  little  further  information  relative  to  the 
subject  is  desired. 

"  ^Would  it  be  feasible  to  install  the  Taylor  System 
in  the  following  manner;  our  idea  being  that,  should 
we  decide  to  install  the  Taylor  System,  we,  of  course, 
wish  to  make  it  a  success.  We  also  wish  to  do  it  as 
easily  as  possible.  Not  that  we  have  in  mind  the  shirk- 
ing of  any  hard  work,  but,  when  we  say  making  the 
installation  easy,  perhaps  we  mean  making  it  smooth. 
For  that  reason,  we  had  thought  it  might  be  well  to 
start  certain  standard  pieces  which  represent  a  consid- 
erable value  as  regards  labor. 

"  *It  so  happens  that  the  pieces  for  which  we  have 
the  most  complete  detail  of  tools  are  the  pieces  which 
cost  the  most  money  to  produce,  or,  in  other  words, 
are  the  most  expensive  pieces  we  machine.  Would  it 
be  feasible  to  install  the  Taylor  System,  as  you  might 
say,  somewhat  piecemeal — ^lay  the  plans,  and  put  some 
few  certain  jobs  to  working,  and,  in  the  meantime,  se- 
cure information  relative  to  additional  jobs,  all  the 
time  making  the  list  of  pieces  under  the  Taylor  Sys- 
tem grow.    That  would  mean  that,  for  a  considerable 


INVESTIGATION    OF    THE   TAYLOR   SYSTEM 


17 


length  of  time,  we  would  have  two  systems  in  opera- 
tion, namely,  the  day  work  system  and  the  Taylor  Sys- 
tem; our  idea  being  that  we  would  like  to  make  the 
installation  in  such  a  manner  that  it  would  hardly  be 
noticed.  That  is,  we  would  not  at  once  go  and  build 
additional  tool  rooms,  planning  boards,  and  such 
articles  all  over  the  plant,  but  we  would  put  them  in 
wherever  it  was  necessary,  small  at  first,  but  in  such  a 
manner  that  they  could  be  readily  extended  to  what 
you  consider  the  proper  sizes  should  be  in  the  end. 

"*This  would  mean  that,  in  all  probability,  you 
would  place  some  assistant  here  to  guide  the  work,  who 
would  gather  data,  issue  instructions,  and  watch  the 
work  of  installation  and,  when  certain  machines  were 
equipped  and  certain  jobs  were  ready  to  be  put  on  the 
Taylor  System,  they  would  be  put  on.' 

"Following  is  Mr.  Earth's  answer : 

"  'Answering  your  letter  of  the  15th,  I  will  say  that 
it  is  perfectly  feasible  to  introduce  task  work  in  connec- 
tion with  a  small  group  of  machines  only,  this  being,  in 
fact,  the  way  we  always  begin. 

"  We  must,  however,  provide  all  the  tools  for  jobs 
going  to  these  machines  in  entire  accord  with  the  sys- 
tem, which  means  that  a  section  of  the  tool  room  must 
be  fully  organized  on  the  system  to  serve  these  ma- 
chines. 

"  'However,  until  the  men  fullv  realize  what  we  are 
after,  there  is  usually  little  opposition  on  their  part, 
and  this  is  always  reduced  to  a  minimum  when  such 
features  of  the  system  are  first  gotten  well  under  way 
as  do  not  directly  affect  them.  Our  plan  is,  therefore, 
to  get  the  air  the  men  breathe  full  of  the  spirit  of 
changes  and  improvements,  so  to  say,  so  that  by  the 
time  we  tackle  them  and  their  work,  they  have  become 


vi 


*' 


18 


THE    TAYLOK    SYSTEM 


m 


so  used  to  changes  that  they  do  not  resent  them,  but 
take  them  as  a  matter  of  necessary  development. 

"  ^If  you  are  satisfied,  temporarily  or  permanently, 
with  your  present  office  methods,  they  may  be  retained 
undisturbed  to  the  extent  to  which  they  have  no  direct 
bearing  on  the  running  of  the  shop.  I  shall  have  to 
insist  only  that  you  adopt  our  style  of  time  card,  from 
which  the  payroll  and  the  progress  of  the  work  may  all 
bo  made  up,  in  any  manner  that  will  most  readily  dove- 
tail into  your  present  methods;  and  also  our  forms  for 
requisitioning,  purchasing,  and  reporting  on  purchased 
materials. 

"  'I  am  unable  to  give  you  a  detailed  statement  of 
what  I  propose  to  do  for  you,  and  send  you  copies  of 
the  various  forms  I  should  want  you  to  adopt  in  con- 
nection therewith,  for  it  would  amount  to  a  regular 
treatise  on  the  subject,  and  would  take  months  to  pre- 
pare in  a  manner  that  would  serve  its  intended  pur- 
pose and  not  be  likely  to  lead  to  misunderstandings. 
Besides,  I  propose  to  do  nothing  for  you  except  what 
you  may  wish  me  to  do,  plus  such  things  as  might  be 
necessary  in  order  to  accomplish  it,  and  which  we 
might  temporarily  and  jointly  overlook  in  discussing 
the  matter. 

"  *The  main  features  of  our  system  are : 

"  *1.  Our  way  of  planning  and  routing  the  work 
through  the  shop,  which  presupposes  our  storeroom 
methods  and  methods  of  handling  purchases ; 

"  *2.  Our  way  of  rate-setting  by  means  of  slide-rules 
and  time-study,  which  presupposes  our  tool-room  meth- 
ods and  our  methods  of  improving  defectively  designed 
machinery ; 

"  *3.  Our  cost  system,  which  lends  itself  to  any  de- 
gree of  refinement  deemed  desirable,  both  in  regards 


nv 


INVESTIfiATION    OF    THE    TAYLOR    SYSTEM 


19 


to  the  details  of  the  product  and  the  analysis  and  dis- 
tribution of  overhead  expenses ; 

"  *4.  Our  general  accounting  methods,  with  monthly 
closing  of  the  books. 

"  *Any  one  of  these  may  be  introduced  without  touch- 
ing upon  others  now  practiced  by  you,  except  to  such 
an  extent  necessary  to  bring  the  old  and  the  new  into 
harmonious  relations.  However,  the  chances  are  that 
you  could  profitably  reorganize  everything  you  do,  in 
course  of  time,  one  step  at  a  time.' 

"The  Tabor  Manufacturing  Company  was  chosen  as 
the  first  to  be  visited,  because  we  were  informed  that 
there,  through  a  thorough  understanding  and  appre- 
ciation of  the  Taylor  System,  it  had  been  put  in  most 
thorough  operation.  The  accuracy  of  our  information 
on  this  point  was  confirmed  by  conversing  with  Mr. 
H.  K.  Hathaway,  Vice-president  of  the  Tabor  Com- 
pany, by  whose  courtesy  we  were  able  to  get  the  great- 
est amount  of  desirable  information  in  the  shortest 
possible  time.  In  fact,  Mr.  Hathaway  withstood  three 
hours  of  rapid  cross-examination  by  the  three  mem- 
bers of  our  party,  and  in  every  case  answered  every 
question  fully  and  frankly. 

"In  order  to  make  our  visit  most  effectual,  a  ques- 
tionnaire was  given  each  member  of  our  party  several 
days  before  the  trip  was  taken,  in  order  to  have  each 
prepared  to  get  definite  information  for  our  subse- 
quent use.  These  questions  and  our  answers  to  them 
are  presented  below. 

"This  Company  (Tabor  Manufacturing  Company) 
makes  molding  machines  and  accessory  foundry  sup- 
plies— tool  grinders^  belt  benches,  etc.  Certain  ma- 
chines are  made  only  on  order,  while  others  are  stand- 
ard in  design  and  parts.    For  the  manufacture  of  the 


I 


^1 


i] 


I 


m 


20 


THE   TAYLOR   SYSTEM 


latter,  raw  stock,  finished  parts  for  assemblies,  and 
completed  machines  are  handled  on  a  maximum  and 
minimum  basis.  In  reply  to  a  question  relative  to 
changes  in  specification  or  design,  Mr.  Hathaway 
stated  that  the  Taylor  System  was  essentially  a  sys- 
tem of  standards,  as  to  designs,  manufacturing  opera- 
tions, tools,  and  time  of  operations,  and,  therefore,  was 
naturally  antagonistic  to  all  such  changes.  The  nature 
of  their  product  was  such  that  improvements  were 
necessary  from  time  to  time,  and  these,  of  course,  were 
made. 

"He  further  added,  that  if  changes  were  made,  it 
was  possible  to  follow  and  account  for  such  changes 
with  exactness,  and  that  *slip-ups'  were  practically 
impossible.  The  fact  that  this  was  an  inflexible  rule, 
that  positively  all  work  must  be  done  under  this  sys- 
tem, tended  to  prevent  the  changes  being  made,  and 
called  for  greater  forethought  on  the  part  of  the  en- 
gineering department.  The  expense  of  such  changes 
and  their  effect  to  delay  production  became  very  evi- 
dent under  this  ruling. 

^  "We  will  take  up  now  the  various  parts  of  the  ques- 
tionnaire previously  mentioned,  with  our  replies : 

"  '1— How  closely  does  the  system  installed  follow 
the  original  suggestion  of  Mr.  Taylor  in  his  paper  be- 
fore the  A.  S.  M.  E.,  June,  1903,  Volume  XXIV.  ? 

"  *A  very  recent  study  of  Mr.  Taylor's  paper  enabled 
us  to  note  that  the  system  at  this  plant  follows  closely, 
in  all  important  details,  the  system  outlined  by  Mr. 
Taylor. 

"*2— Wherein  does  it  differ  from  the  above,  and 
what  local  conditions  seemed  to  make  this  difference 
justifiable?  Has  it  since  metamorphosed  into  a  condi- 
tion retaining  the  germ  ideas  of  the  Taylor  System, 


INVESTIGATION    OF    THE    TAYLOR   SYSTEM 


21 


but  with  changed  appendages,  so  to  speak!  Is  it  effec- 
tive in  all  Departments ;  if  not,  why  not!  What  plan  of 
paying  is  used?  Towne-Halsey,  or  Premium  plan? 
Mr.  Gantfs,  or  Task  Work  with  Bonus?  Taylor's,  or 
Differential  Piece  Eate?' 

"  *The  system  is  effective  in  all  parts  of  the  plant. 
No  orders,  either  for  production,  repairs,  or  renewals 
to  plant  or  for  extensions,  are  executed  until  they  have 
passed  the  planning  department. 

"*The  difference  was  marked,  in  that  the  time  of 
starting  and  stopping  a  lot  of  parts  was  considered  the 
important  feature — ^no  particular  time  was  noted  as  to 
the  accomplishment  of  each  particular  operation. 

"  *The  Taylor  System  includes  the  use  of  the  Differ- 
ential Piece  Rate  plan  in  paying  for  labor.  But  in  this 
plant  they  use  the  Task  Work  with  Bonus  plan.  Not 
only  does  the  producing  workman  receive  a  bonus,  but 
the  gang  boss  and  the  speed  boss  each  receive  a  bonus 
for  each  man  who  makes  a  bonus  and  an  additional 
bonus  if  all  men  make  a  bonus.  Mr.  Hathaway  stated 
that  the  bonus  to  the  bosses  had  reached  a  maximum  of 
about  $10.00  per  week.  The  idea  was  brought  out  that 
this  was  an  important  factor  in  the  success  of  the 
work. 

"  *The  fundamental  difference  between  the  Differen- 
tial Piece  Rate  and  the  Task  Work  with  Bonus  plans 
is  (to  use  Mr.  Taylor's  words)  that  in  the  former  the 
workman  is  not  only  pulled  from  above  to  make  a 
bonus,  but  he  is  also  pushed  from  beneath;  while  in 
the  latter,  the  pulling-from-above  influence  is  potent. 
This  is  due  to  the  fact  that  with  the  Differential  Piece 
Rate  plan,  the  workman  suffers  a  penalty  for  not  reach- 
ing a  certain  standard  by  being  paid  only  for  what  he 
does ;  while  with  the  Task  Work  with  Bonus  plan,  the 


H 

n 


■  ^'1 


^t 


i 

* 

■} 
1- 


22 


THE   TAYLOR   SYSTEM 


workmau  is  sure  to  get  his  established  day  rate  in  ease 
he  fails  to  make  a  bonus. 

"*3 — By  whom  was  the  system  installed!  (a)  By 
some  of  Mr.  Taylor's  co-workers?  (b)  By  the  Tabor 
Manufacturing  Co.  f 

"*The  system  was  installed  by  Mr.  Barth.  Mr. 
Hathaway,  who  was  with  the  Company,  followed  along 
the  lines  established  and  was  assisted  by  Mr.  Barth. 

"  *4 — If  the  Company  was  to  go  through  the  experi- 
ence again,  would  it  handle  it  differently  as  to  install- 
ment! 

"  *Mr.  Hathaway  expressed  the  belief  that  the  bene- 
ficial  results  of  installing  this  system  were  largely  de- 
pendent on  the  thoroughness  with  which  the  founda- 
tions for  it  were  laid.  A  little  hastiness  or  lack  of 
experience  on  the  part  of  those  installing  it,  was  likely 
to  be  paid  dearly  for  by  the  employing  company.  In 
reply  to  our  query,  he  said  that  he  thought  those  best 
qualified  to  lay  such  necessary  foundations  were  Mr. 
Barth,  Mr.  Gantt,  and  Mr.  Cooke.  He  modestly  with- 
held his  own  name,  but  after  seeing  what  he  had  accom- 
plished in  his  own  Company,  we  do  not  hesitate  to  add 
his  name  as  an  easy  fourth ;  inasmuch  as  he  has  been 
associated  with  Mr.  Taylor  in  his  research  work. 

"  *5— The  system  is  O.  K.  for  busy  times ;  is  it  also 
well  adapted  for  slack  times,  such  as  the  depression  of 
1907  and  1908?  How  about  work  not  fully  developed! 
"  *It  is  the  policy  of  this  Company  to  take  men  from 
the  factory  to  supply  the  Planning  Department,  and 
most  men  in  that  department  are  practical  mechanics. 
This  policy  gave  them  men  qualified  by  practical 
knowledge  of  the  shop  to  ]aj  out  work  along  thor- 
oughly practical  lines.  If  intelligence  is  used  in  re- 
cuperating the  shop  force  with  the  right  class  of  men, 


« 


INVESTIGATION    OF   THE   TAYLOR   SYSTEM 


23 


the  entire  supply  for  this  department  can  be  drawn 
from  the  shop,  especially  for  the  planning  functions. 
Thus,  when  the  depression  of  1907  and  1908  came  and 
business  became  slack,  the  inefficient  men  were  dropped 
from  the  factory  list  and  their  places  were  supplied 
from  the  Planning  Department  until  a  profit-making 
equilibrium  was  established,  and  at  no  sacrifice  of  the 
efficiency  of  the  Planning  Department.  When  business 
again  picked  up,  the  process  was  reversed,  and  addi- 
tions were  made  to  the  Planning  Department  as  fast 
as  the  business  demanded  them. 

"  *The  fundamental  feature  that  the  system  accounts 
in  very  close  detail  is  of  the  greatest  aid  in  slack 
times,  and  the  work  can  be  placed  in  the  shops  by  the 
centralization  of  supervision  without  the  influence  of 
the  foreman  acting  to  the  contrary.  This  influence  was 
common  in  the  old  system,  as  the  function  allowed  the 
men  to  slow  up  to  protect  their  organization.  This 
slow-up  was  hard  to  find  by  the  order  system.  Its  pro- 
portion was  seldom  exactly  known.  The  exact  control 
of  machines  and  the  flexible  system  of  routing  made  it 
possible  to  centralize  work  quickly  and  effectively. 

'*'We  consider  one  very  valuable  and  important 
point  that  of  interesting  and  using  the  best  mechanics 
for  clerical  work. 

"  *An  exact  knowledge  of  relative  expenditures  is  an 
especially  good  thing  in  dull  times. 

"  There  was  practically  no  such  thing  as  "work  not 
fully  developed."  It  was  essential  that  each  piece  be 
developed,  and  if  there  were  not  enough  pieces  so  de- 
veloped to  produce  the  assembly,  then  the  assembly 
waited  until  these  were  completed.  However,  the  value 
of  knowing  just  what  was  needed  to  obtain  a  proposed 
result  was  a  most  valuable  asset. 


t  ■ 

i 


*/ 


1 


li 


! 


24 


THE   TAYLOR   SYSTEM 


"*6— About  cost  reduction:  From  the  producing 
labor  standpoint,  how  does  present  cost  compare  with 
that  under  the  old  system?  In  point  of  numbers  and 
amount  paid  for  wages,  how  about  non-producers  as 
compared  with  the  old  system!  Or  what  proportion 
does  the  amount  paid  for  unproductive  labor  bear  to 
total  overhead  under  present  and  old  system? 

"  at  was  stated  to  us  that  since  the  installation  of  the 
system,  the  company's  financial  status  had  changed 
from  a  condition  where  it  was  on  the  verge  of  a  change 
in  management,  if  not  of  a  receivership,  to  a  very 
profitable  business,  notwithstanding  the  fact  that  sev- 
eral firms  had  arisen  in  competition  during  the  last 
decade. 

"  ^n  the  present  system,  as  compared  with  the  old, 
non-producers  have  been  increased  in  numbers  and 
amount  paid  for  wages  in  the  ratio  of  about  5  to  1.  In 
other  words,  they  now  employ  five  non-producers  where 
they  formerly  employed  one,  in  relation  to  the  same 
amount  of  work.  This  is  due  chiefly  to  a  more  exact 
classification  of  non-producers,  i.e.,  a  more  pronounced 
separation  of  productive  and  non-productive  work. 

"*In  conclusion,  a  word  about  the  investment  in- 
volved: Mr.  Hathaway  stated  that  the  company's  in- 
vestment in  commercial  tools  alone,  such  as  drills, 
reamers,  milling  cutters,  clamps,  bolts,  etc.,  had  in- 
creased from  practically  no  investment  to  between 
$35,000  and  $50,000  for  the  service  of  125  workmen. 
Much  more  room,  and  a  more  elaborate  system  of  tool 
racks  and  storing  bins  and  drawers  had  to  be  provided, 
and  in  the  factory  at  each  machine  facilities  have  been 
provided  to  take  care  of  instruction  cards  and  tools. 

"  *The  system  provides  a  graphical  view  of  the  shops 
and  all  equipment.    The  capacity  of  any  or  all  classes 


INVESTIGATION    OF    THE   TAYLOR   SYSTEM 


25 


of  tools,  or  the  retard  of  work  at  any  tool,  was  very 
evident  from  the  work  board. 

"  *The  prevention  of  misplaced  material  was  evident. 
The  lack  of  materials  or  tools  was  easily  anticipated, 
because  they  were  scheduled  at  a  definite  time  and  were 
prepared  beforehand. 

"  *In  brief,  the  company  was  able  to  decide  what  they 
desired  to  do,  then  were  able  to  carry  it  out  in  strict 
accordance  with  previously  considered  and  thought-out 
plans.' 

"The  main  question  left  to  be  considered  is :  what  is 
the  proper  thing  to  be  done  to  make  a  factory  organi- 
zation more  certain  in  accomplishing  predetermined 
results?  Most  competent  managers  and  superintend- 
ents can  see  the  results  that  they  want  accomplished, 
and  are  able  to  get  these  results  in  just  the  proportion 
that  they  are  able  to  eliminate  the  personal  equation 
from  the  rank  and  file  who  execute  their  orders.  Un- 
fortunately, however,  the  personal  equation  cannot  be 
entirely  eliminated  from  an  organization  in  which  any 
ordinary  system  of  handling  work  is  installed. 

"Evidently,  a  step  in  advance  would  be  to  subject  all 
things  to  be  done  in  a  factory  to  some  system  by  which 
each  process  from  start  to  finish  would  be  thoroughly 
planned  by  a  corps  of  well-selected  and  trained  minds, 
and  one  in  which  any  deviation  from  the  plans  so  made 
will  be  apparent  at  once  and  the  reason  ascertained,  so 
that  the  desired  results  will  not  be  thwarted.  The 
Taylor  System,  as  worked  out  at  the  Tabor  Manufac- 
turing Company's  plant,  comes  the  nearest  of  any  we 
have  seen  or  know  about  to  fulfilling  these  conditions. 

"In  other  words,  as  we  see  it,  what  we  should  have 
is  a  system  of  correctly  specifying  and  carrying  out 
work  of  all  kinds ;  so  that  every  process  will  be  car- 


I 


i 

I 

i 


I  i 


i' 


Hi 


26 


THE   TAYLOR   SYSTEM 


ried  out  exactly  as  planned,  and  can  be  repeated  as 
many  times  as  desirable,  in  exactly  the  same  manner 
and  with  exactly  the  same  results,  and  the  sum  of  all 
processes  in  the  factory  can  be  determined  with  nearly 
as  great  exactness  as  can  be  determined  the  sum  of 
two  plus  two.  This  is  the  ideal ;  and  the  thing  that  will 
come  nearest  to  this  is,  in  our  opinion,  the  thing  to  do." 

With  these  facts  so  clearly  before  us,  it  was  quite  ap- 
parent that  the  introduction  of  the  Taylor  System 
would  involve  considerable  expenditure  of  time  and 
money.  This  could  only  be  warranted  if  the  outlay 
really  promised  concrete  gain  commensurate  to  the 
investment. 

Our  determination  to  give  the  system  a  thorough 
trial  was  made  deliberately  and  only  after  a  systematic 
review  of  all  conditions,  for  it  was  not  until  July,  1912, 
that  Scientific  Management  was  practically  applied  in 
our  plant.  Exhaustive  as  had  been  our  investigations, 
our  decision  was  arrived  at  only  after  a  thorough  com- 
prehension of  Doctor  Taylor's  teachings  and  warnings, 
as  so  ably  expressed  in  the  following  extracts  from  his 
writings : 

"After  many  years  of  close  personal  contact  with 
our  mechanics,  I  have  great  confidence  in  their  good 
judgment  and  common  sense  in  the  long  run,  and  I  am 
proud  to  number  many  of  them  among  my  most  inti- 
mate friends. 

^  "As  a  class,  however,  they  are  extremely  conserva- 
tive, and,  if  left  to  themselves,  the  progress  from  the 
older  toward  better  methods  will  be  exceedingly  slow. 
My  experience  is  that  rapid  movement  can  only  be 
brought  about  through  constant  instruction  and  appli- 
cation of  those  responsible  for  its  introduction. 
"It  must  be  said,  therefore,  that  to  get  any  great 


INVESTIGATION    OF    THE   TAYLOR   SYSTEM 


27 


benefit  from  the  laws  derived  from  our  experiments, 
our  methods  must  be  used ;  and  even  they  are  of  little,' 
if  any,  value  under  the  old  style  of  management  in 
which  the  machinist  is  left  with  the  final  decision  as  to 
what  shape  of  tool,  depth  of  cut,  speed,  and  feed  he 
will  use. 

"The  instructions  as  to  speed,  feed,  depth  of  cut,  etc., 
must  be  sent  to  the  machinist  well  in  advance  of  the 
time  that  the  work  is  to  be  done.     Even  if  these  writ- 
ten instructions  are  sent  to  the  machinist,  however, 
little  attention  will  be  paid  to  them  unless  rigid  stand- 
ards have  not  only  been  adopted,  but  enforced  through- 
out the  shop  for  every  detail,  large  and  small,  of  the 
shop  equipment,  as  well  as  for  all  shop  methods.  And, 
further,   but  little   can  be  accomplished   with  these 
laws  unless  the  old  style  of  foreman  and  shop  superin- 
tendent have  been  done  away  with,  and  functional 
foremanship  has  been  substituted— consisting  of  speed 
bosses,    gang    bosses,    order-of-workmen,    inspector 
time-study  men,  etc.    In  fact,  the  correct  use  of  our 
methods  involves  the  substitution  of  our  whole  task 
system  of  management  for  the  old  style  management 
as   described  in   our  paper  on   ^Shop   Management' 
(Transactions  A.  S.  M.  E.,  Vol.  24).     This  involves 
such   radical,   one   might   almost   say   revolutionary 
changes  in  the  mental  attitude  and  habits  both  of  the 
workmen  and  of  the  management,  that  such  re-organi- 
zation  should  only  be  undertaken  under  the  direct  con- 
trol (not  advice,  but  control)  of  men  who  have  had 
years  of  training  and  experience  in  introducing  this 
system. 

"A  long  time  will  be  required  in  any  shop  to  bring 
about  this  radically  new  order  of  things ;  but  in  the 
end  the  gain  is  so  great  that  I  say  without  hesitation 


28 


THE   TAYLOR    SYSTEM 


I'l 


|i 


ill 


that  there  is  hardly  a  machine  shop  in  the  country 
whose  output  cannot  be  doubled  through  the  use  of 
these  methods. 

"And  this  applies  not  only  to  large  shops,  but  also 
to  comparatively  small  establishments.  In  a  company 
whose  employees  all  told,  including  officers  and  sales- 
men, number  about  150  men,  we  have  succeeded  in 
more  than  doubling  the  output  of  the  shop,  and  in  con- 
verting an  annual  loss  of  20  per  cent  upon  the  old  vol- 
ume of  business  into  an  annual  profit  of  more  than  20 
per  cent  upon  the  new  volume  of  business,  and,  at  the 
same  time,  rendering  a  lot  of  disorganized  and  dissat- 
isfied workmen  contented  and  hard-working  by  insur- 
ing them  an  average  increase  of  about  35  per  cent  in 
their  wages.  And  I  take  this  opportunity  of  again 
saying  that  those  companies  are  indeed  fortunate  who 
can  secure  the  services  of  men  to  direct  the  introduc- 
tion of  this  type  of  management  who  have  had  suffi- 
cient training  and  experience  to  insure  success. 

"Unfortunately,  those  fundamental  ideas  upon  which 
the  new  task  management  rests  mainly  for  success  are 
directly  antagonistic  to  the  fundamental  ideas  of  the 
old  type  of  management.  To  give  two  out  of  many 
examples:— Under  our  system  the  workman  is  told 
minutely  just  what  he  is  to  do  and  how  he  is  to  do  it, 
and  any  improvements  which  he  makes  upon  the  orders 
given  him  is  fatal  to  success ;  while,  with  the  old  style, 
the  workman  is  expected  to  improve  constantly  upon 
the  orders  given  him  and  upon  former  methods.  Un- 
der our  system,  any  improvement,  large  or  small,  once 
decided  upon  goes  into  immediate  use,  and  is  never 
allowed  to  lapse  or  become  obsolete;  while  under  the 
old  system,  the  innovation,  unless  it  meets  with  the  ap- 
proval of  the  mechanic  (which  it  never  does  at  the 


Jj 


< 


INVESTIGATION    OF    THE   TAYXOR   SYSTEM  29 

start),  is  generally  for  a  long  time,  at  least,  a  positive 
impediment  to  success.  Thus,  many  of  those  elements 
which  are  mainly  responsible  for  the  success  of  our  sys- 
tem are  failures  and  a  positive  clog  when  grafted  on  to 
the  old  system. 

**For  this  reason  the  really  great  gain  which  will 
ultimately  come  from  the  use  of  our  methods  will  be 
slow  in  arriving— mainly,  as  explained,  because  of  the 
revolutionary  changes  needed  for  their  successful  use 
-^hut  it  is  sure  to  come  in  the  end, 

"Too  much  emphasis  cannot  be  laid  upon  the  fact 
that  standardization  really  means  simplification.    It  is 
far  simpler  to  have  in  a  standard  shop  two  makes  of 
tool  steel  than  to  have  twenty  makes  of  tool  steel,  as 
will  be  found  in  shops  under  the  old  style  of  manage- 
ment.   It  is  far  simpler  to  have  all  the  tools  in  a  stand- 
ardized shop  ground  by  one  man  to  a  few  simple  but 
rigidly  maintained  shapes  than  to  have,  as  is  usual  in 
the  old  style  shop,  each  machinist  spend  a  portion  of 
each  day  at  the  grind-stone,  grinding  his  tools  with 
radically  wrong  curves,  and  grinding  angles,  merely 
because  bad  shapes  are  easier  to  grind  than  good.  Hun- 
dreds of  similar  illustrations  could  be  given  showing 
the  true  simplicity  (not  complication)  which  accom- 
panies the  new  type  of  management." 

How  wise  our  decision  was  is  best  demonstrated  by 
the  fact  that  at  the  present  time  (July,  1917),  we  are 
turning  out  forty-five  cars  per  day  under  conditions 
which  promise  soon  to  tax  our  capacity.  Our  industry 
is  prosperous  and  growing.  We  have  added  some  five 
hundred  thousand  square  feet  to  our  factory  floor 
space  and  are  paying  considerably  higher  wages  to  ^ 
our  workmen,  an  average  increase  of  close  to  60  per 
cent  since  July,  1912,  and  of  90  per  cent  since  1908 


I 


f 


30 


THK  TAYLOR   SYSTEM 


t 


while  our  labor  charge  has  nevertheless  steadily  de- 
creased  through  the  cooperation  of  all  parties.  Since 
the  day  on  which  we  commenced  to  develop  our  new 
management  we  have  had  absolutely  no  labor  trouble 
of  any  kind.  Our  management  is  keen,  active,  and 
prosperous ;  our  workmen  contented,  healthy,  and  also 
prosperous. 


If: 


If» 


Chapter  III 
CLASSIFICATION  AND  STANDAEDIZATION 

>T^HE  Taylor  System  of  Scientific  Management  is  es- 
-■-      sentially  a  system  of  classification  and  stand- 
ardization.    It   is   that   kind   of  management  which 
conducts  a  business  or  affairs  by  standards  established 
,    by  facts  or  truths  gained  through  systematic  obser- 
\  vation,  experiment,  or  reasoning. 

It  is  quite  different  from  Common  Sense  Manage- 
ment, which  relies  upon  native  practical  intelligence, 
natural  prudence,  tact  in  behavior  and  the  generally 
.   accepted  attributes  of  good  management,  in  that  it  is 
based  upon  acquired  learning  and  logical  speculation. 
The  virtues  of  the  older  system  are  not  discarded,  nor 
in  any  sense  discounted,  under  Scientific  Management. 
They  are,  on  the  other  hand,  incorporated  and  assimi- 
lated coordinately  with  acquired  and  carefully  inves- 
tigated knowledge  to  form  a  comprehensive  system  of 
cooperation  between  management  and  pro'ducer.  Care- 
ful and  systematic  classification  and  standardization 
of  methods,  materials,  tools,  and  products  form,  there- 
fore, the  first  requisite  for  the  installation  of  Scientific 
Management. 

During  the  period  of  installation  of  Scientific  Man- 
agement, and  until  the  business  has  been  under  such 
conduct  for  a  considerable  time,  first  standards  are 
naturally  roughly  approximate  to  what  the  standards 
*  31 


'M 


T 


H       ; 


)| 


f 


32 


THE   TAYLOR   SYSTEM 


will  eventually  become.  It  is  natural,  therefore,  to  ex- 
pect a  very  close  intercourse  between  all  of  the  inter- 
ested parties  during  this  development.  The  approxi- 
mate standards  of  an  old  business  must  be  revised, 
and  the  varying  rapidity  of  approach  in  different  busi- 
nesses to  highest  standards  precludes  the  assumption 
that  any  particular  form  of  installation  or  reconstruc- 
tion can  be  used  by  the  industrial  engineer,  or  those 
parties  affected  by  his  counsel. 

Unless  the  difficulties  through  the  period  of  dissolu- 
tion of  established  practice  and  the  development  of 
new  be  overcome  by  persons  who  have  the  interests  of 
the  business  at  heart  and  are  guided  by  the  most  intel- 
ligent persons  obtainable,  the  approach  to  failure  of 
the  business,  as  well  as  of  the  methods,  is  sufficiently 
rapid  to  cause  great  concern,  if  not  severe  losses,  to 
organization  and  finance. 

Preliminary  to  any  active  work,  the  management  and 
the  more  important  supervisors  and  workmen  must  at 
least  agree  to  be  in  accord  with  the  intended  changes 
and  give  their  unqualified  support.  Those  chiefly  re- 
sponsible for  the  work  of  reorganizing  will  mark  most 
deeply  the  final  results.  If  they  conduct  the  work  in  a 
half-hearted  or  unscientific  way,  conditions  will  be 
much  worse  than  before  they  started.  If  they  are 
capable  and  are  supported,  it  will  eventually  be  carried 
to  a  successful  conclusion  and  bring  a  sense  of  comfort 
and  lack  of  discord  which  the  organization  has  hitherto 
unknown. 

Classification  of  product,  materials,  and  machines  or- 
dinarily comprises  the.  first  task — a  most  important 
one,  for  it  forms  the  backbone  of  the  entire  system. 
The  recommended  order  in  which  this  should  be  done 
and  the  scope  of  the  work  is  as  follows : 


CLASSIFICATION   AND   STANDARDIZATION 


33 


I.     CLASSIFICATION  OF  PRODUCT 

The  different  kinds  of  units  sold  are  recorded.  Each 
of  these  units,  if  composed  of  two  or  more  parts,  is 
then  completely  analyzed,  first,  into  its  largest  group, 
then,  each  of  these  groups  into  the  next  largest  groups' 
and  so  on,  until  individual  or  single  parts  are  all  listed! 
In  the  separation  of  these  units  into  their  subdivisions, 
there  is  a  natural  division  of  parts  into  two  classes ; 
those  that  are  purchased  finished  ready  for  use,  in  one 
class,  and  those  that  are  to  be  manufactured,  in  another 
class.    Of  the  parts  which  are  manufactured,  there  may 
be  two  classes ;  one  class  in  which  the  parts  are  assem^- 
bhes  of  several  pieces,  and  the  other  class,  single  parts 
which  fasten  the  assemblies  together. 

As  the  units  are  disassembled,  a  record  is  compiled 
of  the  order  in  which  this  occurs.    The  inverse  of  this 
IS  naturally  the  order  in  which  the  parts  shall  be 
assembled.    A  chart  (Figure  1)  of  this  classification  is 
then  developed,  showing  this  order.  When  the  simplest 
and  most  economical  form  is  determined,  it  is  adopted 
as  standard.    It  is  important  that  standard  designa- 
tions, or  index  numbers,  be  applied  to  each  part  and 
assembly.     One  most  common  in  old  methods  was  a 
drawing  number,   or,  as  called  by  some,   a  pattern 
number. 

This  use  of  a  drawing  number  as  a  designation  sym- 
bol IS  not  always  to  be  recommended,  for,  unless  the 
drawing  numbers  are  applied  in  consecutive  order  to 
the  parts  as  they  are  assembled,  they  do  not  provide  a 
Jogical  and  easily  remembered  classification  index  but 
simply  an  arbitrary  designation  which  may  tend  to 
confuse. 

There  is  no  reason  why  the  Dewey  decimal  system 
could  not  be  applied  to  the  classification  of  product, 


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34 


THE   TAYLOR    SYSTEM 


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CLASSIFICATION    AND   STANDARDIZATION 


35 


*^    *H    CO    94    CO 


however,  and  accomplish  a  very  superior  result  in  its 
development  over  that  of  the  drawing  number,  but  only 
by  the  phonetic  form  of  classification,  in  which  letters 
which  approximate  some  characteristic  sound  of  the 
part  are  used,  will  the  greatest  convenience  be  ob- 
tained. 

n.     CLASSIFICATION    OF   METHODS 

Since  different  procedure  must  be  followed  in  estab- 
lishing methods  in  various  businesses,  it  is  evident  that 
a  complex  business  must  be  analyzed  and  classified  into 
simpler  forms  better  to  study  and  to  provide  for  the 
requirements  of  each.  • 

The  chief  product  of  an  automobile  manufactory  is — 
the  automobile.  After  several  years  of  production, 
however,  the  making  of  repair  parts  for  current  and 
non-current  models  becomes  a  necessary  addition,  and 
also  factory  repairs  to  customers'  cars. 

Standards  for  one  division  vary  greatly  from  the 
other  two,  and,  unless  separated,  the  best  result  for 
each  will  not  be  attained.  Our  methods  have  been  ap- 
plied separately  and  differently  to  each  of  the  three 
divisions  mentioned.  The  principles  of  conduct  are 
the  same,  but  the  standards  for  each  have  different 
values. 

Ill     CLASSIFICATION  OF  MATERIALS 

In  manufacture,  an  assortment  of  finished  materials 
and  parts  are  required  to  be  on  hand  at  all  times. 
Some  of  these  may  be  used  for  direct  production  pur- 
poses, such  as  bar  and  sheet  stock;  others,  primarily 
for  assemblies,  such  as  fastenings,  linkages  and  fin- 
ished shapes ;  another  kind,  that  of  perishable  supplies. 


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36 


THE   TAYLOR    SYSTEM 


such  as  waste,  sand-paper,  and  lubricants;  still  an- 
other, stationery  supplies.  These  fall  into  natural  di- 
visions, which  are  best  indicated  by  the  accompanying 
chart  (Figure  2). 

In  the  "special  classified,"  those  parts  are  arranged 
which  are  purchased,  but  are  made  to  the  manufac- 
turers' orders.  The  "miscellaneous  classified"  (our 
classification  of  which  is  shown)  is  the  most  complex 
of  all,  and  represents  the  most  common  of  materials. 
Few  of  these  common  materials  have  standard  desig- 
nation by  those  who  produce  them.  It  is  not  at  all  un- 
common to  find  entirely  different  forms  of  expression 
used  by  different  persons  to  describe  the  same  article, 
and  it  is  very  noticeable  that  the  most  insignificant 
things  require  the  greatest  effort  to  describe. 

After  the  materials  are  completely  classified  and 
standardized,  the  arrangement  of  the  materials  in  the 
storerooms  is  according  to  the  classification,  very 
much  as  are  the  books  in  a  library.  Fastenings  will  be 
found  in  one  division,  bar  stock  in  another,  sheet  stock 
in  another ;  so  that  merely  a  designation  of  the  article 
immediately  indicates  its  approximate  location  to  the 
experienced  stock  man.  This  saves  a  great  amount  of 
wasted  effort  in  the  filling  of  orders. 

Such  classification  of  materials  makes  one  of  the 
tangible  assets  of  the  business  most  presentable  in  the 
financial  statement.  This  is  because  the  arrangement 
of  the  storeroom  records  agrees  with  the  classification 
of  materials.  A  materials-ledger  inventory  can  be 
very  quickly  drafted,  and  the  distribution  of  value  of 
materials  readily  determined.  "Special  classified"  ma- 
terials are  not  marketable  except  through  the  process 
of  manufacture,  while  "miscellaneous  classified"  are 
available  for  immediate  sale. 


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CLAiSSlFlOATlON    AND   SIANDABDIZAIION 


37 


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38 


THE   TAYLOR   SYSTEM 


IV.     CLASSIFICATION  OF  MACHINES 

In  a  complex  mechanical  industry,  a  large  variety  of 
machines  are  used.  Among  the  more  common  ones 
are  punch  presses,  turret  lathes,  automatics,  grinders, 
milling  machines,  and  drilling  machines.  Many  types 
are  in  each  of  these  classes.  Where  a  large  variety  of 
parts  are  manufactured  in  relatively  small  quantities 
an  arrangement  of  machines  by  groups  of  common 
class  is  an  economical  one.  To  route  parts  over  their 
many  operations,  and  to  be  sure  that  the  productive 
burden  on  a  machine  does  not  exceed  its  capacity  in 
the  hours  of  work,  it  is  essential  to  know  the  number 
of  similar  machines  in  a  class,  the  number  of  the  dif- 
ferent types,  and  the  particular  location  of  each  ma- 
chine. 

Automatics  are  naturally  divided  into  two  types> 
semi-automatic  and  full  automatic.  Drilling  machines 
into  power,  multiple  spindle,  and  sensitive.  All  of  the 
machinery,  therefore,  is  classified  into  its  most  general 
class,  then  into  sub-classes,  then  into  types,  and  finally 
to  individual  machines.  Not  only  are  machines  and  all 
equipment  classified  and  symbolized,  but  identical 
types  are  standardized  for  exact  interchangeability. 

It  is  not  uncommon  to  receive  machines  from  the  best 
machine-tool  makers  in  our  country  that  are  reported 
to  be  exact  duplicates,  but  upon  which  it  is  impossible 
to  exchange  identical  tools  and  obtain  the  same  result. 
A  slight  variation  in  turret  height  on  a  turret  lathe,  or 
the  least  difference  in  spindle  thread,  in  gear  ratio,  or 
in  pulley  diameter,  will  preclude  exact  interchangeabil- 
ity, and  such  machines  must  be  mechanically  stand- 
ardized and  so  maintained. 

The  principal  standard  that  must  be  determined  for 
practically  all  machinery  is  the  percentage  of  increase 


CLASSIFICATION    AND   STANDARDIZATION 


39 


in  speed  over  each  speed  change  by  the  cones  or  gears. 
The  standard  promulgated  by, Mr.  Barth,  which  we 
adopted,  was  such  that  the  change  of  speed  from  one 


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FIG.  3.    CLASSIFICATION  OF  MACHINES 
Single-spindic  turret  lathe  and  diagram  of  "Revised  Gearing" 


INTENTIONAL  SECOND  EXPOSURE 


(t| 


38 


THE   TAYLUK    SYSTEM 


IV.     CLASSIFICATION  OF  MACHINES 

In  a  complex  iiiecliaiiical  industry,  a  large  variety  of 
machines  are  used.  Among  the  more  common  ones 
are  punch  presses,  turret  lathes,  automatics,  grinders, 
milling  machines,  and  drilling  machines.  Many  types 
are  in  each  of  these  classes.  Where  a  large  variety  of 
parts  are  manufactured  in  relatively  small  quantities 
an  arrangement  of  machines  l)y  groups  of  common 
class  is  an  economical  one.  To  route  parts  over  their 
many  operations,  and  to  be  sure  that  the  productive 
burden  on  a  machine  does  not  exceed  its  capacity  in 
the  hours  of  work,  it  is  essential  to  know  the  number 
of  similar  machines  in  a  class,  the  number  of  the  dif- 
ferent types,  and  the  i)articular  location  of  each  ma- 
chine. 

Automatics  are  naturallj'  divided  into  two  types, 
semi-automatic  and  full  automatic.  Drilling  machines 
into  ])owcr,  multiple  si)indle,  and  sensitive.  All  of  the 
machinery,  therefore,  is  classified  into  its  most  general 
class,  then  into  sub-classes,  then  into  types,  and  finally 
to  individual  machines.  Not  only  are  machines  and  all 
e(iuipment  classified  and  symbolized,  but  identical 
types  are  standardized  for  exact  interchangeability. 

It  is  not  uncommon  to  receive  machines  from  the  best 
machine-tool  makers  in  our  country  that  are  reported 
to  be  exact  dnjilicates,  but  upon  which  it  is  impossible 
to  exchange  identical  tools  and  obtain  the  same  result. 
A  slight  variation  in  turret  height  on  a  turret  lathe,  or 
the  least  difference  in  spindle  thread,  in  gear  ratio,  or 
in  [)ullcy  diameter,  will  preclude  exact  interchangeabil- 
ity, and  such  machines  must  be  mechanically  stand- 
ardized and  so  maintained. 

The  principal  standard  that  must  be  determined  for 
practically  all  machinery  is  the  percentage  of  increase 


CLASSIFICATION    A^'n    STANDAliDlZATiON 


39 


in  speed  over  each  speed  change  by  the  cones  or  gears. 
The  standard  ])romulgated  by  Mr.  Earth,  which  we 
adopted,  was  such  that  the  change  of  speed  from  one 


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FIG.  .T    CLASSIFICATIOX  OF  MACniXFS 
Sinj-lr  spindle  turret  lathe  and  diagram  of  "Revised  Gearing' 


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40 


THE   TAYLOR    SYSTEM 


I 


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step  to  the  next  increased  in  geometric  progression. 
The  diagram  (Figure  3)  illustrates  a  well-known  make 
of  machine  completely  analyzed.     The  increments  of 
speed  are  shown  before  alteration  and  after  alteration. 
Such  diagrams  have  been  prepared  for  all  of  the  ma- 
chinery which  we  use.    It  is  evidently  a  very  simple 
matter  to  determine  the  exact  speed  which  can  be  ob- 
tained on  any  particular  setting  of  the  machine.    So, 
if  a  certain  rate  of  cutting  of  machine  tool  has  been 
determined  and  the  work  is  to  be  done  on  a  particular 
machine,  it  is  possible  for  the  planning  department, 
through  this  record,  to  set  the  time  which  will  be  re- 
quired.   From  the  study  of  this  diagram  it  is  evident 
that  not  only  must  the  line-shaft  speed  be  standardized, 
but,  if  electrically  driven,  even  the  voltage  of  the  sup- 
plying line  must  be  maintained  constant.    In  fact,  our 
power  plant  department  is  not  infrequently  brought  to 
task  on  account  of  reduced  voltage  by  our  learning  that 
a  certain  group  of  machines  fell  a  definite  percent- 
age below  the  speed  at  which  they  were  to  be  operated. 

v.     STANDARDIZATION  OF   MECHANICAL  METHODS 

When  the  classification  of  product  is  arranged,  each 
part  must  be  analyzed  to  determine  the  mechanical 
procedure.  This  procedure  is  then  adopted  as  stand- 
ard. A  part  in  process  must  move  from  machine  to 
machine  in  the  exact  order  as  recorded,  unless  a  tem- 
porary suspension  of  standard  is  authorized  by  the 
manager.    That  is,  if  the  order  of  work  would  be : 

Operation  1.    Automatic 


u 


u 


u 


ti 


2.  Milling 

3.  Drilling 

4.  Heat  Treating 

5.  Grinding, 


m 


CLASSIFICATION   AND   STANDARDIZATION 


41 


there  will  be  no  exception  to  this  order  except  by  spe- 
cial authorization. 

The  mechanics  who  established  this  routing  did  so 
with  the  complete  understanding  of  their  problem,  and, 
although  there  may  be  another  way  "just  as  good,"' 
such  a  substitution  could  cause  mechanical  troubles 
and  disorganize  the  control. 

To  follow  certain  mechanical  methods,  the   kind, 
form,  and  amount  of  material  must  be  known  to  the 
factory  mechanic.    If  he  has  an  elaborate  and  costly 
preparation  method,  he  is  best  able  to  determine  the 
least  number  of  pieces  which  should  go  over  that  opera- 
tion at  one  "set-up."    So  the  size  of  lot  has  been  stand- 
ardized for  each  operation.    The  same  lot  size  on  the 
same  operation  on  the  same,  or  similar,  machine  will 
be  produced  in  the  same  time.    A  definite  producing 
time  for  each  operation  is  thus  established,  to  which 
is  added  a  reasonable  allowance  to  assure  the  com- 
pletion of  the  operation  in  actual  production  work 
within  the  allowance  time  thus  fixed.    The  allowance 
time  for  each  individual  operation  on  each  part  is 
definitely  set  and  the  allowance  time  for  all  operations 
on  each  lot  of  a  particular  part,  or  assembly,  may  be 
arranged  in  their  consecutive  order— i.e,,  the  allow- 
ance time  for  each  operation  on  a  part  listed  in  the 
consecutive  order  in  which  the  various  operations  are 
performed. 

Figure  4  illustrates  diagrammatically  such  arrange- 
ment of  allowance  times  for  a  particular  part  as  dis- 
played  on  our  Control  Boards.  Each  of  the  square 
blocks,  or  cages,  represents  a  particular  operation  on 
the  part,  and  the  space  following  each  cage  (the  space 
between  one  cage  and  the  next  cage  to  the  right)  is 
proportioned  to  the  allowance  time  per  lot  for  the  par- 


T 


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II 


Ir 


42 


THE   TAYLOR   SYSTEM 


ticular  operation.  The  space  occupied  by  the  cage 
itself,  representing  on  our  Control  Boards  one  working 
day,  is  the  time  allowance  between  operations  allotted 
to  the  moving  of  the  work  to  the  machine  on  which  the 
next  operation  on  the  part  is  to  be  performed,  setting- 


Pne  Work  Day  Allowance 
Time  (oe  each  Operation 
Standard  Time  of  10  Days 


'Allowed  for  Inipection  and 
Beceipt  of  Stock 


Ko.58  Turret     _ 

Beceipt  of  Raw  Material  ^*'ifo^r 
iato  Poccbated  Stores 


Producing  Hoara 
for  each  Operation 

0.0  Hours 
Hoors(  Clutch  Drom 

(E25AQDaM.    ,21405 


No.l 

Sang  SflllerJ        No... 
Operation  No»2  Operati 

Total  Producing  Hours  and  Allowance 
*      ^Tirae  for  one  Lot  of  200  Pieces' 


Drawing  No.ft 

Jlanotacturini: 

Symbol 


FIG.  4.    STANDARDIZATION  OF  MECHANICAL  METHODS 
The  basis  for  the  Control  Boards 

up,  etc.,  while  the  space  measured  over  all  represents 
the  time  the  lot  is  in  the  shop.  Preceding  the  first  oper- 
ation cage,  the  space  is  proportioned  to  the  time  re- 
quired for  inspection  and  receipt  of  stock  from  stores. 
A  similar  arrangement  for  each  part  and  all  assem- 
blies, as  in  classification  of  product,  is  made  and 
mounted  on  a  Control  Board  (Figure  5),  and  estab- 
lishes complete  standardization  of  all  mechanical 
methods.  A  more  detailed  description  of  the  Control 
Boards,  their  function  and  operation  will  be  given  in 
Chapter  V. 

VI.     STANDARDIZATION  OF  TOOLS 

Jigs  and  fixtures  which  are  special  to  the  part  for 
which  they  are  used  are  standardized,  as  far  as  pos- 
sible, in  design  and  construction,  and  are  naturally 
classified  and  arranged  in  the  tool  storeroom  according 
to  symbols  which  agree  with  lists  specified  for  each 
mechanical  operation.  In  addition,  there  are  the 
numerous  small  tools  which  must  be  employed,  such  as 


m^ 


m 


Si 

•*j 

a 

q: 

^                                                        Sal'   k 

iJ    -M                                                                                         J- 

m  1 

^  « 

tt%  •    f 

^  s 

lm-  f 

<t 

tt  be 

llMV^1kr2^ 

b   a;                                              III^H 

£i                                                        KI^^I 

B  ^                    i^ilH 

K  •«                                 m  ;■• ,: 

02    0)                                                         Hi  v'+ 

P  I                               P  '  \ 

^    ^                                                  K  ^    - 

•       -4-1                                                                                 MB 

QQ  .                                   HI 

»o                                        R 

^  ^                           m 

^o                     m 

ij  s                             HI 

g^              !■' 

^  ^                               fi^B  ' 

0«M 

i^^^^K 

O  o 

i'^^B 

-    a 

^^^H 

^% 

^^H    ' 

»  c. 

^B  A 

Hr 

<^ 

^^^^^K. 

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^^^^H! 

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^^^^^^B ' « 

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^^^^^^K  '  4^ 

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^■^ 

J 


4a 


INTENTIONAL  SECOND  EXPOSURE 


42 


THE   TAVUJil    SYSTEM 


ticular  operation.  The  si)aee  occupied  by  the  eapre 
itself,  representing?  on  our  Control  Boards  one  working 
day,  is  the  time  allowance  between  operations  allotted 
to  the  moving  of  the  work  to  the  machine  on  which  the 
next  operation  on  the  part  is  to  be  performed,  settin.i;- 


One  Work  Day  Allowance 

Time  (or  each  Operation 
Standard  Time  o(  10  Days 


'Allowed  (or  luspection  and 
Receipt  of  Stock 


vc 


^^tor*i 


Producing  Ilours 
for  each  Operation 

0.6  ilours 
IloursI  Clutch  DrotQ 

(E25AliU2X    (21405 
"  T 


Receipt  of  Raw 
into  Purchased  Store! 


/    KVtV    ^IMG-L                /    wy3'<-31?F«ppblM!  Worked  Material'  ^ 
No.5«  Turret  Lathe                    I            /Engineeringllnspcction    Finished 

„  ^     .  Operation  I  Xo.l             \           |            No.3  Punch  rre?8     Sf,'"'^'"  \ 

Material         jj^j  j^j^ng  inilcrj  No.90  Vise     Operation  No.4  ^^toraKe  \ 


Operation  i<0.2  Operation  No.3 

[Total  Producing  Hours  and  Atiowance 
"Time  for  one  Lot  of  2G0  Pieces       ^ 


t 


ICame  of  Part' 

Drawing  No.& 

Manufacturing 

Symbol 


FIG.  4.    STANDARDIZATION  OF  MECHANICAL  METHODS 
The  basis  for  the  Control  Boards 

up,  etc.,  while  the  space  measured  over  all  represents 
the  time  the  lot  is  in  the  shop.  Precedin.ui:  the  first  oper- 
ation cage,  the  space  is  proj^ortioned  to  the  time  re- 
(juired  for  inspection  and  receipt  of  stock  from  stores. 
A  similar  arrangement  for  each  part  and  all  assem- 
blies, as  in  classification  of  product,  is  made  and 
mounted  on  a  Control  Board  (Figure  5),  and  estab- 
lishes complete  standardization  of  all  mechanical 
methods.  A  more  detailed  description  of  the  Control 
Boards,  their  function  and  operation  will  be  given  in 
Chapter  V. 

VI.     STANDARDIZATION   OF  TOOLS 

Jigs  and  fixtures  which  are  special  to  the  part  for 
which  they  are  used  are  standardized,  as  far  as  pos- 
sible, in  design  and  construction,  and  are  naturally 
classified  and  arranged  in  the  tool  storeroom  according 
to  symbols  which  agree  with  lists  specified  for  each 
mechanical  operation.  In  addition,  there  are  the 
numerous  small  tools  which  must  be  employed,  such  as 


I 


43 


i| 


I  i 


i 


44 


THE  TAYLOR   SYSTEM 


drills,  reamers,  milling  cutters,  grinding  wheels,  etc., 
and  these  have  to  be  standardized  and  a  reasonable 
stock  maintained.  This  makes  it  imperative  that  cer- 
tain kinds  of  each  class  be  adopted  as  standards  for 
use  and  that  only  such  tools  be  employed.  The  natural 
inclination  of  the  mechanical  man  is  to  try  every  known 
make  of  drill,  for  instance,  especially  those  of  unusual 
and  frequently  useless  form.  For  his  protection,  as 
well  as  to  make  the  attainment  of  an  efficient  standard 
possible,  it  is  necessary  to  limit  his  privilege  in  this  re- 
spect. The  decision  as  to  what  variety  of  these  tools 
should  be  used  is  left  to  our  Eouting  Department.  Its 
decision  is  final,  and  fixes  the  standard,  which  cannot 
be  deviated  from,  excepting  when  the  standard  is 
changed.  Such  alterations  cannot  be  made  without  the 
most  careful  investigation  and  the  cooperative  judg- 
ment of  management  and  workmen. 

How  important  is  this  rigidity  of  standard  can  be 
exemplified  in  no  stronger  way  than  by  the  fact  that 
Doctor  Taylor  and  his  associates  spent  the  best  part  of 
thirty  years  in  reaching  a  conclusion  as  to  the  stand- 
ardized form  of  the  cutting  edge  of  simple  lathe  tools. 
So  much  effort  is  required  to  obtain  even  such  an  ap- 
parently simple  determination  that  once  obtained  it 
must  be  put  into  practice  and  adhered  to.  Since  the 
chief  use  of  machinery  and  men  is  merely  to  force  a 
small  cutting  edge  through  refractory  materials,  and 
since  the  energy  of  the  entire  combination  is  concen- 
trated upon  this  very  limited  area,  that  is,  the  edge  of 
the  tool,  any  possible  effort  put  forth  for  an  exact  de- 
termination of  the  most  economical  form  will  be  repaid 
in  full  by  the  results  obtained.  What  is  true  of  lathe 
tools  is  equally  true  of  all  other  perishable  tool 
supplies. 


i 


FIG.  6.   ARRANGEMENT  OP  A  TOOL  STOREROOM 


1 


ti 


45 


INTENTIONAL  SECOND  EXPOSURE 


44 


THE    TAV1A)K    SYSTEM 


drills,  reamers,  milling  cutters,  grinding  wheels,  etc., 
and  these  have  to  he  standardized  and  a  reasonahle 
stock  maintained.  Tliis  makes  it  imperative  that  cer- 
tain kinds  of  each  class  be  adopted  as  standards  for 
use  and  that  only  such  tools  be  employed.  The  natural 
inclination  of  the  mechanical  man  is  to  try  every  known 
make  of  drill,  for  instance,  especially  those  of  unusual 
and  frequently  useless  form.  For  his  protection,  as 
well  as  to  make  the  attainment  of  an  efficient  standard 
possible,  it  is  necessary  to  limit  his  privilege  in  this  re- 
spect. The  decision  as  to  what  variety  of  these  tools 
should  be  used  is  left  to  our  Kouting  Department.  Its 
decision  is  final,  and  fixes  the  standard,  which  cannot 
be  deviated  from,  excepting  when  the  standard  is 
changed.  8uch  alterations  cannot  be  made  without  the 
most  careful  investigation  and  the  cooperative  judg- 
ment of  management  and  workmen. 

ITow  important  is  this  rigidity  of  standard  can  be 
exemplified  in  no  stronger  way  than  by  the  fact  that 
Doctor  Taylor  and  his  associates  spent  the  best  part  of 
thirty  years  in  reaching  a  conclusion  as  to  the  stand- 
ardized form  of  the  cutting  edge  of  simple  lathe  tools. 
So  much  effort  is  required  to  obtain  even  such  an  ap- 
parently  simple  determination  that  once  obtained  it 
must  be  put  into  practice  and  adhered  to.  Since  the 
chi(^f  use  of  machinery  and  men  is  merely  to  force  a 
small  cutting  edge  through  refractory  materials,  and 
since  the  energy  of  the  entire  combination  is  concen- 
trated upon  this  very  limited  area,  that  is,  the  edge  of 
the  tool,  any  possible  effort  put  forth  for  an  exact  de- 
termination of  Ww  most  economical  form  will  be  repaid 
in  ['nil  bv  the  results  obtained.  What  is  true  of  lathe 
tools  is  ('(jually  true  of  all  other  perishable  tool 
.  applies. 


» 


FIG.  C.    ARRANGEMENT  OF  A  TOOL  STOREROOM 


45 


f. 


'i,i 


46 


THE   TAYLOR   SYSTEM 


Standards  for  tools  once  fixed,  an  adequate  supply 
must  be  maintained,  and  all  tools  classified  and  so 
grouped  in  the  tool  storeroom.  A  view  of  one  of  our 
storerooms  (Figure  6),  in  which  the  tools  are  arranged 
by  classes  according  to  the  symbols  specified  for  each 
mechanical  operation,  well  illustrates  this  convenient 
and  efficient  plan. 

To  maintain  the  standard  forms  of  cutting  edges 
and  the  efficiency  of  the  cutting  tools,  a  tool-grinding 
department,  equipped  with  numerous  machines  of  pre- 
cision, is  an  essential  adjunct  to  the  tool  storeroom.  In 
this  department  all  tools  are  sharpened,  etc.,  by  spe- 
cialists in  such  work,  so  that  the  tools  issued  from  the 
tool  storeroom  for  any  job  are  in  the  best  shape.  There 
must  be  no  grounds  for  a  workman  complaining  of  his 
tools.  A 

Vn.     CLASSIFICATION  OP  ACCOUNTS 

With  a  complete  and  exact  classification  of  the  va- 
rious elements  involved  in  manufacture,  primarily  for 
the  sake  of  convenience  and  economy  in  manufacture, 
a  classification  of  accounts  follows  as  a  necessity  along 
lines  similar  to  those  mentioned  above.  For  account- 
ing purposes,  departmental  lines  are  drawn  and  a  per- 
petual inventory  is  maintained  for  each  department — 
buildings  and  real  estate,  machinery,  direct  and  indi- 
rect labor,  tools  and  fixtures,  agree  in  the  accounts  with 
the  physical  distribution. 

In  addition  to  the  adoption  of  definite  classifications 
as  standard,  many  other  elementals  must  be  consid- 
ered. Chief  among  these  are  the  route  or  path  of  pro- 
duction as  mentioned;  forms,  which  are  essentially 
standardized  instructions  of  the  manager;  hours  of 
labor,  rate  of  wages;  conduct  of  personnel;  time  of 
manual,  as  well  as  of  mechanical,  operations. 


Chapter  IV 

ESTABLISHING   CONTROL 

I  ►TIHE  development  of  a  successful  and  equitable  form 
-■-  of  management  is  essentially  a  science,  and  must 
be  built  up  on  definite  basic  laws  of  justice,  equality 
and  efficiency.  Control  must  be  cooperative,  but  never- 
theless absolute.  The  establishing  of  control  is  then 
the  first  consideration,  and  naturally  closely  follows  the 
general  scheme  briefly  outlined  in  the  preceding  chap- 
ter. The  adoption  of  a  classification  of  product,  ma- 
terials and  machines  best  suited  to  our  individual 
requirements  and  the  practical  application  of  the 
standards  were  commenced  with  the  cooperation  of 
Mr.  Barth  as  advisor  and  guide  in  1911,  although  abso- 
lute control  was  not  established  until  July,  1912. 

Classification  of  product,  Le,,  the  'marketable  output 
of  our  industry,  constituted  our  first  step,  and  was 
somewhat  more  complex  than  would  be  the  same  task 
today,  as,  at  that  time,  we  were  building  commercial 
as  well  as  passenger  automobiles. 

Due  to  complexities  arising  in  the  classification  of 
the  car,  it  was  decided  to  treat  the  engine  as  a  separate 
element  of  manufacture,  so  our  product  was  classified 
under  four  divisions— Passenger  Vehicles,  Commercial 
Vehicles,  Engines,  and  Sundry  Parts.  At  this  time 
(1911)  Sundry  Parts,  Le,,  parts  for  damage  replace- 
ments in  customers'  cars,  were  made  on  the  regular 
^  47 


i  ! 


! 


i 


1 1 

i  '  I 


i  : 

V 


f/ 


48 


THE   TAYLOR    SYSTEM 


machines  through  the  factory;  consequently,  with 
more  or  less  job  work  done  in  the  manufacturing  de- 
partments, there  was  always  possibility  of  interfer- 
ence. It  was  furthermore  recognized  that  tool  making, 
pattern  making,  factory  repair  work  and  repairs  to 
customers'  cars  were  operations  not  closely  allied  to 
repetitive  manufacture.  An  investigation  of  the  use 
of  shop  machines  proved  that  a  considerable  number 
were  used  continually  for  sundry  parts.  We  decided, 
therefore,  to  establish  an  entirely  different  division  of 
work  for  these  parts,  separated  physically  and  man- 
agerially  from  the  main  factory. 

There  had  been  a  belief  that  sundry  parts  work  pro- 
vided a  useful  burden  for  the  regular  factory  machines 
during  forced  idleness  for  lack  of  productive  materials 
or  of  uneven  control.  Under  the  old  managerial  meth- 
ods this  was  undoubtedly  true,  but  was  found  unneces- 
sary and  a  positive  trouble  when  the  machine  burdens 
were  exactly  calculated  and  the  control  was  in  force  to 
require  such  burdens.  That  is,  through  intensive  con- 
trol it  was  entirely  possible  to  so  regulate  machine 
burden  that  the  percentage  of  idleness  was  no  greater 
without  sundry  production  than  with  it,  and  the  ma- 
chines which  were  taken  away  from  the  main  factory 
and  set  aside  for  this  purpose  were  used  to  better 
advantage  for  economy  and  service. 

Tool  and  pattern  making  and  factory  repairs  were 
also  segregated  and  eliminated  from  the  control  plan 
of  the  automobile  shops.  This  does  not  mean  that  they 
were  set  aside  without  a  particular  supervision,  but 
that  a  very  definite  exact  form  of  control  was  provided 
for  these  separate  shops,  as  for  the  main  works. 

With  this  policy  established,  a  classification  of  the 
motor  car  product  was  made.    The  classification  of  an 


1 


ESTABLISHING   CONTROL 


49 


engine  is  typical.    An  engine  and  a  complete  set  of 
drawings  with  a  bill  of  materials  was  set  aside  for 
analysis.    The  Eoute  and  Operation  Department,  the 
foreman  of  the  engine  assembly,  and  an  observer  then 
completely  dissected  the  engine  and  made   detailed 
notes  of  the  sub-assemblies  which  could  logically  be 
built  as  such ;  and  noted  and  listed  all  fastenings  such 
as  screws,  washers,  etc.,  including  even  binding  wire. 
The  drawings  were  studied  in  conjunction  with  the  en- 
gine, and  both  were  worked  over  until  it  was  evident 
that  at  least  a  very  close  approximation  to  best  meth- 
ods and  best  procedure  had  been  determined.    A  com- 
plete classification  diagram  for  the  engine  was  then 
laid  out,  much  as  described  in  Figure  1,  Chapter  III. 
The  assembly  drawings  were  modified  until  they  ex- 
actly agreed  with  the  physical  assembly.    This  required 
considerable  change  of  drawings  from  the  form  in 
which  the  engineering  and  experimental  departments 
developed  them  for  their  uses  and  for  the  shops,  but 
it  brought  about  a  very  desirable  result.     The  fore- 
man, the  workman,  and  the  routing  department  knew 
exactly  from  the  drawing  what  parts  would  appear  in 
the  physical  assembly.    It  is  now  known  that  the  draw- 
ing of  a  particular  part  or  assembly  requires  exactly 
what  is  shown  on  its  face  and  no  more.    The  drawings 
were  further  changed,  so  that  the  bill  of  materials  ap- 
peared  only  in  the  drawing,  with  a  specification  in  the 
margin  for  chemical  analysis  or  material  index  number. 
Each  part  in  the  assembly  was  indicated  by  a  sym- 
bol which,  as  far  as  possible,  reflected  by  sound  the 
assembly  in  which  it  was  used,   e.g.,  the   assembly 
PU30TCAS    meaning    (P)assenger    Vehicle,    Model 
(U),  (30)  Horsepower,   (T)ouring  (C)hassis   (A)xle 
(S)pring.  The  latter  part  of  the  symbol  rarely  changes 


fr 


\ 


50 


THE  TAYLOR   SYSTEM 


ESTABLISHINa  CONTROL 


51 


if 


,  / 


!    . 


as  the  models  change,  because  it  is  conventional  with 
the  motor-car  that  a  spring  be  used  in  conjunction  with 
the  axle.  The  horsepower  symbol  and  the  model  sym- 
bol are  the  index  of  the  changing  product. 

The  spring  is  made  up  of  a  variety  of  leaves,  each 
one  a  part;  therefore  a  complete  symbol  of  a  spring 
leaf  would  be  PU30TCA1S,  with  an  index  number  in- 
troduced before  the  last  letter  for  specific  reference. 
Other  parts  which  hold  the  spring  together,  purchased 
finished  as  catalogued  by  vendors  and  used  for  a  va- 
riety of  purposes,  can  be  formed  into  a  complete  clas- 
sification of  their  own.    This  will  be  mentioned  later. 

There  was  some  question  as  to  the  advisability  of 
symbolizing  all  past  product,  but  it  was  decided  to 
make  no  particular  attempt  to  symbolize  obsolete  out- 
put. In  some  industries  this  might  be  necessary,  but 
in  our  case  we  have  found  it  not  called  for.  For  clas- 
sification, we  adopted  our  drawing  numbers  with  a 
symbol  for  index.  This  has  proved  quite  satisfactory, 
and  it  is  an  interesting  matter  of  record  that,  on  ac- 
count of  the  rapidly  changing  product,  three  sets  of 
charts  became  obsolete  before  we  obtained  a  final  form 
for  classification. 

The  mechanical  procedure,  tool  and  equipment  lim- 
its and  tolerances  were  described  for  both  parts  mak- 
ing and  the  assembling  of  the  product  from  the  sim- 
plest part  into  the  first  sub-assemblies,  and  so  on 
through  to  the  completed  group.  No  act  or  movement 
was  considered  of  so  little  importance  as  to  be  omitted. 
No  attempt  was  made  to  take  time  studies,  due  to  the 
experimental  nature  and  lack  of  repetitive  work.  To 
assume  that  of  the  many  persons  who  performed  this 
work,  no  two  exactly  agreed  is  entirely  true.  Each  de- 
sired to  do  something  in  a  particular  way,  but  it  was 


obvious  that  there  had  to  be  a  definite,  predetermined 
agreement  for  all  parties  to  work  in  harmony.  To 
prevent  discord,  each  function  was  given  to  a  particu- 
lar man,  and  with  responsibility  went  authority. 

A  rough  index  of  arrangement  of  work  was  made 
during  the  analytical  investigations,  which  was  later 
carefully  revised  and  eventually  standardized.     That 
is,  the  procedure  in  all  details  was  established  and 
could  be  deviated  from  only  by  mutual  agreement  of 
all  parties  and  with  the  authorization  of  the  Production 
Manager.    Differences  of  opinion  were  not  infrequent 
at  first,  but  the  violation  of  a  standard  could  not  be 
allowed.     When  this  was  thoroughly  appreciated  by 
all  parties,  and  then  only,  did  it  become  possible  for 
the  organization  to  work  together  for  exact  reproduc- 
tion.   Of  course,  the  best  procedure  was  desired,  but 
standardization  was  the  more  imperative.    Eventually 
the  best  methods,  or,  at  least,  those  we  considered  the 
best  or  most  advisable,  became  standard ;  but  whatever 
the    existing    standard,    standard    it    remained    until 
changed  with  the  approval  of  the  Production  Manager. 

The  classification  of  variety  stores  constituted  a  try- 
ing task.  ^  All  catalogues  which  could  be  obtained  of 
the  materials  entering  into  our  work  were  compared 
and  classified  according  to  the  form  illustrated  in  Fig- 
ure 2,  Chapter  III.  This  arrangement  soon  took  on 
such  large  proportions  and  the  symbol  thus  developed 
became  so  complex  that  the  scheme  appears  unwieldly 
and  unnecessarily  complicated.  Notwithstanding  its 
apparent  cumbersomeness,  however,  the  classification 
has  proved  eminently  efficient,  for  it  has  remained  in 
constant  use,  without  a  single  exception,  on  all  draw- 
ings of  all  product  up  to  the  present  time,  July,  1917. 
While  apparently  bulky  and  the  symbols  large,  this 


!     ' 


(I 


'r  i 


m  i 


52 


I 


THE   TAYLOR   SYSTEM 


i 


ii 


\\  I'' 


ml 


i  , 


I.- 1 


classification  seems  to  be  the  shortest  and  most  exact 
method  of  explaining  and  describing  each  of  the  mis- 
cellaneous parts  entering  into  the  make-up  of  an  auto- 
mobile. 

One  of  the  most  complex  symbols  we  employ  is  that 
for  sponges,  and  if  it  had  not  been  used  continuously 
for  five  years  without  a  protest  I  would  be  inclined  to 
say  it  was  unusable.  The  elements  of  this  symbol— 
SV(2U)AT1S— are: 

S — Stores 

V — ^Variety  of  Purposes 

(2U)— Particular  Sponge  indicated 

A — Miscellaneous  class  of  materials 

T— Textile  and  Fibrous  Materials  not  Elsewhere 
Classified 

S — Sponges 

CLASSIFICATION  OF  SPONGES 

(Copied  from  a  page  in  our  classification  folio.) 

Stjmbol  SV-AT8 

Condition— "Bleached"  and  "Unbleached" 

Shapes— "Forms"  and  "Cuts" 

(Forms  are  natural  sponge  shape) 
(Cuts  are  parts  of  Sponges) 

The  different  sponges  have  different  number  of 
pieces  to  the  pound,  depending  on  the  character  of  the 
sponge  and  whether  it  be  in  the  "Form"  or  "Cut."  The 
number  of  the  sponge  is  the  number  of  the  pieces  which 
will  make  a  pound,  and  this  number  will  be  used  in  the 
symbol,  in  addition  to  the  letter  "B"  for  bleached  and 
"U"  for  unbleached. 

The  kinds  of  sponges  listed  in  the  following  table 
(Fig.  7)  with  their  particular  uses  are  standard. 

There  is  another  class  of  purchased  parts  which  are 


\V0 


ESTABLISHING   CONTROL 


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I 


54 


THE  TAYUOE  SYSTEM 


ft 


seldom,  if  ever,  used  in  current  production,  or  at  least 
infrequently  used,  specified  as  "Unclassified  Stores." 
That  is,  they  are  such  items  as  will  rarely,  if  ever,  be 
purchased  on  repetitive  orders,  including  desks,  chairs, 
special  automobile  fittings  for  sales  orders,  etc. 

The  most  important  items  in  automobile  stores  are 
recorded  in  ledgers,  each  item  having  its  own  sheet, 
but  unclassified  items  are  ordered  on  serial  numbers 
from  one  ledger  record.  In  the  control  of  materials, 
another  essential  element  introduced  was  the  stock  bin 
tag,  designed  so  that  each  new  receipt  of  material  was 
at  once  recorded  on  a  tag  and  sent  with  the  material 
to  its  bin  in  the  stock  room.  Each  bin  is  plainly 
marked  and  its  location  recorded  on  the  storeroom 
copy  of  the  purchase  order.  It  carries  a  bin  balance 
tag,  upon  which  the  receipt  and  depletion  of  stock  is 
immediately  recorded.  Keceipt  of  material  is  entered 
in  the  Stores  Ledgers  only  on  presentation  of  an  ap- 
proved receiving  ticket,  which  is  accepted  as  indicative 
of  stock  on  hand  only  when  it  has  been  passed  upon  by 
Inspectors  of  Material.  That  is,  no  debit  to  stores  is 
made  until  after  the  material  has  been  passed  upon 
and  pronounced  satisfactory  by  the  inspection  division. 
Then  stock  on  hand  is  a  fact,  with  no  uncertainty  in 
respect  to  scrap  or  rejection.  This  inspection  is  done 
rapidly,  and  enables  the  receiving  tickets  to  reach  the 
ledger  in  time  to  allow  payments  to  be  made  promptly 
on  all  cash  discount  invoices.  This  is  particularly  im- 
portant in  the  case  of  those  materials  which  require 
chemical  analyses  or  special  mechanical  tests. 

The  Stores  Ledgers  and  the  entries  thereon  are  so 
planned  that  an  exact  balance  sheet  is  struck  at  each 
transaction  and  checked  with  the  storeroom  tags  as 
they  close  out  by  the  issue  of  material.    As  each  tag 


^m 


ESTABLISHING   CONTROL 


55 


closes  it  is  sent  to  the  Stores  Ledgers,  where  the  detail 
issues  shown  by  the  stock  bin  are  checked  to  the  issue 
as  reported  from  the  stores  issue  sheets.  Any  dis- 
crepancy is  immediately  investigated  and  corrected. 
Something  very  desirable  is  obtained  in  this  connection 
in  that  the  stock  man  at  the  stock  bin,  although  widely 
separated  from  the  ledgers,  has  within  his  powers  and 
responsibility  the  keeping  of  an  exact  balance  of  stock 
on  hand  to  agree  to  the  records  on  the  books.  Not  only 
quantities  are  recorded  on  the  ledgers,  but  also  money 
values,  regardless  of  varying  prices  on  the  same 
article.  Each  new  quantity  of  parts  received  is  added 
to  those  on  hand,  and  each  new  value  received  as  shown 
on  the  purchase  order  is  added  to  the  old  value  on 
hand ;  the  new  value  divided  by  the  new  quantity  gives 
the  new  price.  If  there  be  no  change,  and  even  if  there 
should  be,  the  new  price  is  calculated  for  each  receipt 
of  material.  The  charges  for  parts  shipped  from  stores 
to  the  shops  take  into  consideration  the  purchase  price 
and  make  possible  an  exact  money  value  inventory  at 
any  time. 

One  feature  of  the  stores  plan  is  that  every  person 
has  a  clearly  defined  and  specified  duty  and  respon- 
sibility. A  fault  can  be  thus  located  with  such  exact- 
ness that  there  is  no  attempt  made  to  pass  the  respon- 
sibility from  one  individual  to  another.  There  are  few 
penalties,  because  each  person  understands  thoroughly 
that  his  abilities,  faults,  and  discrepancies  cannot  es- 
cape managerial  observation.  A  most  important 
feature  is  the  provision  for  each  individual,  unaided, 
to  check  his  own  accomplishment  perpetually.  By  this 
arrangement,  and  the  natural  personal  desire  of  men 
to  do  your  work  if  they  know  how  and  can,  very  little 
discipline  is  called  for. 


If 


i  '  i 


'4 


i 


;  i 


i 


II 


' ,  I 


i^ 


I 


56 


THE   TAYLOR   SYSTEM 


When  a  change  in  purchase  methods  was  requested 
from  the  Purchasing  Agent,  and  he  was  told  of  the  im- 
portance to  Stores  of  exact  purchase  prices  on  pur- 
chase orders,  the  contention  was  made  that  this  would 
not  do,  that  the  "trade"  would  not  stand  for  publishing 
prices;  furthermore,  that  it  was  most  difficult  to  pre- 
determine just  what  was  to  be  paid  for  an  article,  and 
would  cause  considerable  delay  in  placing  an  order.  It 
was  finally  conclusively  proven  that  there  was  such  a 
delay,  but  it  was  also  shown  to  be  caused  by  the  Pur- 
chasing Department's  lack  of  touch  with  current  prices, 
so  a  very  large  percentage  of  all  purchase  orders  were 
placed  by  the  Company  without  bargaining  or  prices. 
This  fault  could  not  be  charged  to  the  Purchasing  De- 
partment only,  but  to  the  organization  as  a  whole ;  that 
is,  designs,  drawings,  schedules,  and  requisitions  from 
the  engineering  and  factory  departments  were  received 
altogether  too  near  the  time  for  finish  of  product.  In 
a  later  chapter  I  will  give  an  extract  from  a  communi- 
cation of  more  recent  date  from  our  Purchasing  De- 
partment, showing  what  improvements  occurred  to 
them  by  virtue  of  methods  which  were  earlier  opposed. 
One  of  the  very  helpful  aids  to  the  Purchasing  Depart- 
ment has  been  the  standardization  of  purchase  times 
for  different  classes  of  materials — approximately  95 
different  kinds  being  on  the  list.  The  Purchasing  Agent 
has  agreed  to  a  set  time  in  which  he  will  deliver  into 
Stores  each  class  of  material  after  he  receives  a  req- 
uisition. It  is  surprising  that  in  the  difficult  year  of 
1916  little  variation  was  evident  in  the  practical  results 
compared  to  standards.  That  is,  if  the  Purchasing 
Agent  agreed  to  accept  100  consecutive  work  days  to 
bargain,  buy,  and  deliver  to  Stores  a  special  analysis 
steel  forging,  he  almost  invariably  made  good.    Since 


i 


ESTABLISHING   CONTROL 


57 


there  is  involved  in  this  time,  bargaining,  buying,  mak- 
ing, shipping,  and  receiving,  any  one  of  the  elements 
can  be  modified  in  the  case  of  special  trouble,  so  that 
delivery  can  well  be  maintained  within  a  specified  time. 

After  the  new  methods  of  requisitioning,  purchasing, 
receiving,  storing,  and  issuing  materials  had  been  in 
effect  for  a  short  time,  schedules  began  to  improve 
rapidly  as  a  result  of  the  certainty  of  control  of  the 
fundamental  element — ^material. 

Such  methods,  with  respect  to  materials,  required 
that  storerooms  be  put  under  very  close  supervision; 
that  all  of  the  individuals  involved  be  trained  to  appre- 
ciate their  new  responsibilities.  There  were  few 
changes  in  the  stockroom  forces,  because  such  training 
proved  to  be  entirely  possible,  even  though  sometimes 
trying  to  the  older  men. 

With  material  provided  to  meet  the  product  clas- 
sification, the  factory  machinery  and  fixtures  were  then 
changed  to  standard  position  and  interchangeability  of 
feeds  and  speeds.  Line  shafts  were  cut  apart  and  re- 
motored.  Machines  were  arranged  to  fit  the  combina- 
tions of  operations  and  processes  to  better  advantage. 
Mechanical  motions  of  the  machines  were  arranged,  so 
that  those  doing  common  kinds  of  work  would  have  the 
same  feeds  and  speeds.  The  shops  were  generally 
overhauled.  A  larger  stock  of  small  tools  and  fixtures 
were  obtained,  and  a  tool  storage  department  provided 
for  their  better  care.  The  path  for  production  of  each 
part  was  determined  and  standardized ;  i.e,,  the  routing 
of  the  part  through  the  factory  was  established.  The 
routing  was  not,  as  usually  the  case,  to  a  department 
where  the  foreman  would  choose  his  method,  but  rather 
to  the  specific  machine,  or  group  of  machines.  For 
routing  of  product,  departmental  lines  were  ignored. 


tl 


1 


i 


/ 


58 


THE   TAYLOR   SYSTEM 


m 


I H 


If  any  work  could  not,  temporarily,  be  accomplished 
by  a  machine  on  the  standard  routing,  it  would  be 
placed  on  another  similar  machine  by  the  supervisor 
of  the  department,  or  be  referred  to  the  routing  de- 
partment for  a  new  placement.  As  mentioned  above, 
machines  were  arranged  in  gangs  as  fast  as  they  could 
be  changed  to  exact  mechanical  agreement;  so  that  if 
an  operation  was  due  on  one  machine,  temporarily  de- 
ranged, it  could  be  placed  by  the  despatch  clerk  at  once 
on  another  machine  with  the  same  feeds  and  speeds. 
Such  interchange  provides  variety  of  work  for  each 
workman,  breaks  the  monotony  of  a  day,  and  should 
be  of  real  training  value  to  him. 

It  is  interesting  to  note,  in  connection  with  this  point, 
that  in  a  great  majority  of  cases  the  workmen  dislike 
the  variety  feature,  and  have  placed  themselves  on 
record  that  they  had  much  rather  work  on  one  opera- 
tion throughout  a  day  or  longer  than  to  have  frequent 
changes  with  a  complexity  of  machine  preparation, 
change  of  material,  machine,  and  drawing.  Unques- 
tionably, they  desire  to  specialize.  The  great  growth 
in  mechanical  industries  has  precluded  the  correspond- 
ing development  of  variety  mechanics.  So  a  large  ma- 
jority of  workmen  in  shops  now  can  operate  but  one 
or  two  kinds  of  machines.  If,  however,  the  product  is 
of  such  limited  quantity  that  there  must  be  a  consid- 
erable number  of  operations  to  each  machine,  it  is  ob- 
vious that  the  worker  must  change  frequently.  Ac- 
cording to  the  theories  of  some,  that  is  what  the  man 
should  do,  and  for  his  welfare  he  should  do  many 
things.  I  was  naturally  interested  to  learn  that  a 
very  much  less  frequent  change  would  be  entirely 
agreeable. 

As  each  part  is  apportioned  to  each  machine,  the 


ESTABLISHING   CONTROL 


59 


time  of  that  machine  for  each  operation  is  determined 
as  correctly  as  possible,  either  by  exact  time  study  or 
estimated  from  previous  data.  A  machine  burden  book 
is  opened  to  record  such  data  for  each  machine.  A 
machine  capacity  to  be  provided  would  then  equal  the 
total  of  this  time  multijjlied  by  the  number  of  cars  to 
be  produced  in  one  day.  This,  divided  by  the  work  time 
in  a  day,  forms  the  number  of  machines  required.  In 
this  same  machine  burden  book  is  recorded  the  kind 
and  value  of  all  repairs  to  the  machine  as  a  guide  to 
the  determination  of  the  machine  depreciation  and  the 
date  at  which  the  machine  should  be  replaced  by  a  new 
one. 
/  The  responsibility  of  selecting  the  machine  for  a 
given  operation,  routing  the  material  and  work  to  it, 
designing  and  building  all  necessary  tools,  jigs,  fix- 
tures, drawing  up  specificaticTns  for  form  and  size  of 
materials,  etc.,  rests  with  the  Tool  and  Operation  De- 
partment. The  workman  does  not  commence  his  work 
until  the  machine  has  been  prepared,  the  materials 
routed  thereto  and  the  tools  and  fixtures  delivered  on 
an  operation  tool  list  from  the  tool  room.  That  is,  the 
workman  is  supplied  with  material  and  tools  before  the 
job  is  assigned  to  him.  This  is  fundamental.  His  job 
order  is  not  issued  until  he  and  his  machine  are  ready 
to  commence  production. 

Control  of  all  operations  is  thus  centered  about  the 
"despatch  room,"  from  which  all  shop  orders,  tool  lists, 
routing  instructions,  etc.,  are  issued,  irrespective  of 
whence  they  may  emanate.  In  this  despatch  room, 
the  general  clearing  house  for  all  shop  communications, 
are  a  series  of  compartments,  each  containing  a  com- 
plement of  partitioned  boxes,  or  racks,  which  stand  for 
the  various  types  of  machines  in  the  shop  under  the 


y 


60 


THE   TAYLOR   SYSTEM 


i 

ll 


lii 


"m  m  I 


i' 


control  of  the  particular  compartment.  Each  one  of 
the  boxes,  in  the  various  sections  of  which  are  kept  the 
shop  cards,  etc.,  represents  one  type  of  machine  and 
carries  that  particular  machine  symbol.  The  shop 
cards,  with  attached  inspection  coupon  made  out  by  the 
Planning  Department  in  accordance  with  the  estab- 
lished schedule  of  production  when  received  at  the 
despatch  room,  are  distributed  to  the  particular  ma- 
chine boxes  representing  the  machines  on  which  the 
work  is  to  be  done  and  filed  in  order  of  date  in  the 
central  sections. 

When  a  job  is  commenced,  a  ticket  is  despatched  to 
the  "move  man"  instructing  him  to  transport  the  ma- 
terial to  the  machine  to  be  used,  and  a  tool  list  is  issued 
for  delivery  to  the  machine  of  the  required  tools,  etc. 
When  these  have  been  received  at  the  machine,  the 
scheduled  job  order  is  withdrawn  from  its  place  in 
the  central  section  of  the  machine  box,  both  job  order 
and  inspection  coupon  time  stamped  and  the  two  parts 
separated.  The  job  order  with  a  card  of  detailed  in- 
structions is  sent  to  the  workman,  who  then  commences 
his  job,  while  the  stamped  inspection  coupon  is  placed  in 
a  forward  section  of  the  machine  box.  When  the  work- 
man completes  his  current  job,  he  sends  his  job  order 
card  back  to  the  despatch  room,  where  it  and  its  in- 
spection coupon,  which  has  reposed  in  the  forward  sec- 
tion of  the  particular  machine  box,  are  immediately 
time  stamped  again  and  a  ticket  issued  to  the  "move 
man"  to  transfer  the  material  to  the  machine  for  the 
next  operation.  The  inspection  coupon  of  the  com- 
pleted job  is  placed  in  the  inspector's  rack  for  inspec- 
tion and  a  time  stamped  new  job  card  with  detailed  in- 
structions issued  to  the  workman,  who  then  takes  up 
the  new  job,  the  preliminary  steps  of  having  tools  and 


i 


ESTABLISHING   CONTROL 


61 


materials  ready  at  the  machine  having  been  previously 
attended  to.  The  old  job  when  inspected  is  recorded 
and  the  job  order  time  card  despatched  to  the  Paymas- 
ter's Department  for  payroll  account.  This  procedure 
continues  throughout  the  production  period  of  the  part, 
i.e.,  as  long  as  the  particular  part  remains  in  the  shop. 
Every  other  part  and  assembly  is  handled  in  a  similar 
manner.  Such,  briefly,  is  the  method  of  control  of  the 
Production  Department. 

Two  important  things  are  here  shown:  First,  the 
foreman  is  a  factor  in  the  route  of  the  work  and  is 
called  into  consultation  at  the  time  of  routing  to  assist 
in  making  a  standard  determination.  Once  the  de- 
termination is  made,  he  must  abide  by  it  and  be  re- 
leased from  the  clerical  work.  Once  this  standard 
route  is  established,  he  is  relieved  of  repetitive  effort 
with  regard  to  the  best  man  or  machine  for  a  certain 
piece  of  work.  His  technical  knowledge  of  routing 
having  been  recorded  at  the  time  of  routing,  his  un- 
divided attention  can  be  given  to  the  direction  of  the 
work  in  process.  This  is  equally  true  of  tools,  with 
respect  to  which  the  foreman  was  consulted.  But  once 
a  given  method  is  agreed  upon,  it  cannot  be  changed 
until  all  parties  to  the  original  agreement  have  again 
collectively  acted.  This  obtains  a  large  proportion  of 
best  methods.  Second,  if  there  is  a  wide  variety  of 
work  in  process  in  a  shop,  there  may  be  a  very  large 
number  of  individual  jobs  at  any  given  machine. 

One  of  the  most  difficult  problems  in  a  complex  prod- 
uct made  repetitively  is  to  determine  the  exact  order 
in  which  the  jobs  should  be  given  out  to  the  workmen. 
This  problem  was  one  of  the  most  difficult  which  we 
have  so  far  solved  in  our  Scientific  Management  work. 
It  was  finally  consummated  in  the  development  and 


■'1 


I 


y 


62 


THE   TAYLOK    SYSTEM 


V' 


ill 


use  of  what  are  called  "control  boards."  These  and 
other  material  aids  in  enforcing  the  system  of  control 
will  be  taken  up  in  the  following  chapters. 


i 


il^ 


.  I 


Chapter  V 

THE  SCHEDULE,  CONTROL  BOARDS  AND 
PNEUMATIC  DESPATCH  TUBES 


OUR  plan  of  manufacture  is  for  stock,  as  must  be 
that  of  any  industry  producing  an  article  sub- 
ject more  or  less  to  a  seasonable  demand,  but  at  the 
same  time  manufacture  is  conducted  on  a  definite  pre- 
determined schedule.  This  schedule  is  specified  by 
the  general  management  and  has  to  be  governed  by 
the  probable  demands  of  the  market,  gained  through 
previous  experience  and  logical  deductions.  There- 
fore, output  must  be  planned  according  to  a  predeter- 
mined schedule  based  in  no  small  part  upon  anticipated 
demand.  This  necessitates  a  production  schedule 
which  can  be  readily  speeded  up  or  retarded,  as  the 
occasion  may  arise. 

The  management  decides  first  upon  the  number  of 
cars  which  should  be  built  to  meet  the  expected  demand 
for  the  season  and  then  arranges  a  schedule  of  pro- 
duction so  as  to  supply  the  demand  as  efficiently  as 
can  be  foreseen.  It  is  evident  that  should  work  on 
the  entire  season's  contemplated  output  of  cars  be 
started  simultaneously  and  progress  maintained  con- 
stant all  cars  would  be  completed  at,  or  about,  the  same 
date.  This  would  be  suicidal  to  efficient  production, 
for  it  would  entail  an  activity  far  in  excess  of  the 
capacity  of  the  plant,  followed  by  a  long  period  of  idle- 
ness. Furthermore,  the  demand  is  not  usually  as  grea|; 
6  63 


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i 


64 


THE    TAYLOR   SYSTEM 


Ill 
III 


IP 


early  in  the  season  as  subsequently,  when  the  model 
has  become  better  known  and  has  created  its  market. 
And  again,  the  demand  should  be  stimulated  if  the 
model  has  been  a  success.  It  is  also  probable  that  the 
demand  will  decrease  toward  the  end  of  the  season. 
Of  course,  production  cannot  exactly  follow  the  rise 
and  fall  of  the  market,  but  it  can  best  meet  the  demand 
by  an  accelerating  schedule  of  production.  The  acceler- 
ation should  commence  with  the  start  of  production  in 
order  to  assure  a  solid  foundation  for  the  support  of 
succeeding  activity.  It  can  always  be  retarded  should 
the  occasion  arise ;  for  instance,  in  the  event  of  a  poor 
market  or  unpopular  model. 

Our  experience  has  been  that  the  time  from  the  req- 
uisition of  the  material  for  the  first  part  worked  upon 
in  the  construction  of  the  car  until  the  car  is  completed 
and  delivered  to  stores  for  the  selling  department  of 
the  organization  will  cover  a  period  of  some  one  hun- 
dred and  seventy  working  days,  if  cost  of  production 
is  maintained  within  reasonable  limits. 

The  desirable  schedule  of  production,  the  accelerat- 
ing schedule,  may  be  depicted  by  a  rising  production 
curve,  uniform  increments  along  which  measure  the 
number  of  cars  to  be  constructed  (see  Figure  8).  The 
base  line  (horizontal  projection)  of  the  curve  may 
then  be  considered  as  measuring  the  period  over 
which  the  cars  represented  by  the  curv^e  are  to  be  com- 
pleted, so  that  the  projection  of  any  point  on  the  curve, 
indicated  a  specific  number  of  cars,  on  the  base  line 
fixes  the  date  at  which  such  number  of  cars  is  to  be 
completed. 

In  an  industry  in  which  a  large  number  of  cars  is 
to  be  produced  each  season,  such  as  ours,  it  is  advisable 
to  divide  the  total  number  of  cars  to  be  produced  into 


♦i 


lifi 


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SCHEDULE,   CONTROL   BOARDS  AND   DESPATCH   TUBES       65 

a  number  of  "lots"  scheduled  for  specific  dates  and  to 
plan  for  lot  production  rather  than  to  attempt  to  plan 
construction  for  individual  cars  or  for  the  entire  sea- 
son's output  at  one  time.    For  convenience,  it  is  also 


Producfion  Curve 


Transit  oF  Curve 


.'•Un/form  Increments 
'ci   Q.        representing  Cars 


I  ^'Product/Or? 
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■--PRODUCTION   PERIOD 


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FIG.  8.  ACCELERATING  PRODUCTION  SCHEDULE 

advisable  to  have  the  lots  of  uniform  size.  Obviously, 
the  production  of  each  lot  must  be  according  to  the 
adopted  production  schedule,  so  that  the  horizontal 
projection  of  any  point  on  the  lot  production  curve  on 
the  base  line  will  indicate  the  proportion  of  that  lot 
which  must  be  completed  on  a  specific  date. 

As  the  production  of  both  the  season's  output  of  cars 
and  that  of  each  individual  lot  is  based  on  a  definite 
schedule,  the  production  of  all  individual  component 
parts  and  assemblies  must  likewise  be  according  to  the 
same  rate  of  progress.  An  accelerating  production  of 
cars  necessitates  a  similarly  accelerating  production  of 
all  the  individual  parts  entering  into  the  completed  cat. 


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66 


THE   TAYLOR    SYSTEM 


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The  issuance  of  the  necessary  shop  orders  for  the 
numerous  acts  required  in  the  preparation  of  the  vari- 
ous parts  and  assemblies  entering  into  a  complex  prod- 
uct, such  as  we  build,  in  strict  accordance  with  such  a 
schedule  of  manufacture,  would  entail,  under  any  ordi- 
nary method  of  control,  a  stupendous  amount  of  work 
and  the  liability  of  much  confusion.  To  simplify  the 
task  as  much  as  possible,  we  have  developed  our  system 
of  Control  Boards.  These  act  as  mediums  to  guide  the 
carrying  on  of  all  necessary  acts  in  the  preparation  of 
our  product,  so  there  may  be  a  minimum  of  confusion 
and  a  maximum  conservation  of  capital  in  material  in 
stores,  and  of  material  and  labor  costs  in  "work  in 
process." 

The  Control  Boards,  a  general  view  of  which  was 
shown  as  Figure  5,  Chapter  III,  are  some  ten  feet  in 
length,  and  carry  a  continuous  vertical  curtain  of  hori- 
zontal flat  steel  tubes,  with  extruded  aluminum  slides 
one-half  inch  in  width  extending  the  full  width  of  the 
board.  These  tubes  are  hung  on  vertical  cables  passing 
over  drums  on  a  double  line-shaft  in  the  crown  of  each 
board.  The  slides  are  retained  by  guides  fastened  to 
the  tubes  in  such  a  way  that  the  cables  will  slide  freely 
through  each  combined  strip,  of  which  there  are  a  suffi- 
cient number  to  cover  at  least  three-quarters  of  the 
height  of  the  board — approximately  six  feet.  Through 
suitable  mechanism,  this  curtain  of  combined  strips 
may  be  opened  up  to  allow  the  insertion  of  additional 
strips,  or  strips  may  be  removed  and  the  curtain  again 
closed.  The  combined  strips  as  they  hang  on  the  cables 
are  spaced  one-eighth  inch  apart,  and,  except  at  the 
time  of  changing  the  strips,  the  curtains  are  held 
firmly  against  the  frame  of  the  board  by  end  guards. 

At  the  upper  corners  of  each  Control  Board  a  differ- 


^    ^  ' 


SCHEDULE,   CONTROL  BOARDS   AND   DESPATCH   TUBES      67 

ential  reel  is  attached,  with  a  ribbon  guide  connecting 
the  pair.  These  are  to  accommodate  the  "schedule 
tape,"  which  governs  all  the  acts  for  which  the  Control 
Board  serves  as  guiding  medium.  This  schedule  tape, 
proportioned  so  that  each  half  inch  represents  one 
work-day,  is  a  duplication  of  the  production  schedule, 
as  obtained  by  the  projection  of  successive,  equally 
spaced  points  on  the  lot  production  curve  upon  its 
base  line  (see  Figure  8).  On  a  schedule  tape,  the 
values  read  from  right  to  left,  and  such  a  tape  is  pre- 
pared for  each  lot  of  cars  manufactured.  In  addition 
to  this  governing,  or  controlling,  tape,  two  other  meas- 
uring tapes  are  required  for  the  set-up  of  the  board 
and  as  conveniences  in  making  work-day  measure- 
ments. These  tapes,  a  work-day  measuring  tape,  also 
reading  from  right  to  left  in  consecutive  half-inch 
work-day  units,  and  a  work-day  calendar  tape  similarly 
proportioned,  but  reading  from  left  to  right,  are  car- 
ried on  a  type  of  balanced  straight-edge,  which  can  be 
raised  and  lowered  in  front  of  the  Control  Board  dis- 
play curtain.  At  the  ends  of  this  straight-edge  sets  of 
reels  and  connecting  guide  are  carried  for  the  support 
of  the  work-day  measuring  tape  and  of  the  work-day 
calendar  tape. 

The  equipment  of  the  boards  consists  of  four  prin- 
cipal items : 

First:  Vanadium  steel  cages,  one-half  inch  square, 
so  designed  and  made  that  they  will  clip  tightly  to  any 
strip  anywhere  on  any  board.  That  is,  the  strip  widths 
and  the  steel  cage  construction  is  sufficiently  perfect  to 
be  exactly  interchangeable,  and  to  clip  the  strip  with 
sufficient  force  so  that  the  cage  cannot  be  readily  re- 
moved. 

Second :  Boxwood  type  with  printed  celluloid  number 


■^1 


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68 


THE   TAYLOR   SYSTEM 


lif  ip 


faces  cemented  thereon,  gauged  so  exactly  that  three 
will  fit  snugly  into  the  springs  in  the  steel  cages.  They 
will  not  fall  out  under  ordinary  use,  but  can  be  readily 
removed  without  detaching  the  cage  from  the  strip. 
And  other  boxwood  blocks  with  plain  celluloid  faces,  for 
various  purposes — all  designed  to  be  interchangeable 
in  sets. 

Third :  Specially  designed  parallel  jaw  pliers  for  set- 
ting or  removing  the  type  in  the  cages. 

Fourth:  Monroe  Calculating  Machine,  which  is  ex- 
ceedingly flexible,  for  frequent  combinations  of  addi- 
tion, subtraction,  multiplication  and  division. 

We  have  at  present  twelve  control  boards  with  twen- 
ty-four control  curtains,  approximately  2,500  combined 
strips ;  15,000  steel  cages ;  and  50,000  type  and  marker 
blocks.  All  strips,  cages,  and  type  are  machine  made 
and  can  be  considered  strictly  interchangeable.  The 
pliers  will  not  slip  from  the  type.  The  type,  in  combi- 
nations of  three,  will  not  fall  from  the  cages,  but  can 
be  drawn  with  the  pliers  without  dislodging  the  cage 
from  the  strip. 

The  boards  were  designed  by  the  writer  and  his  staff, 
and  were  constructed  in  our  works. 

The  primary  idea  in  this  mechanism  is  that  of  a 
universal  bulletin  board,  on  which  any  information  can 
be  placed  in  any  relation.  If  desired,  co-ordinate  rela- 
tions can  be  shown  through  the  mechanisnu 

We  have  provided  one  combined  strip  for  each  motor 
car  part  which  we  manufacture.  We  do  not  use  a  strip 
for  any  part  that  we  purchase  finished,  ready  for  assem- 
bly. There  are  a  sufficient  number  of  steel  cages,  so 
that  one  is  available  for  each  operation  which  is  to  be 
controlled — as  patterns  ordered — requisitions  for  pur- 
chase order,  stored  material,  issue  of  material,  ma- 


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INTENTIONAL  SECOND  EXPOSURE 


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68 


THE    TAYLOR    SYSTEM 


faces  cemented  thereon,  gau<;*ed  so  exactly  that  three 
will  fit  snn^'ly  into  the  springs  in  the  steel  cai»:es.  They 
will  not  fall  out  under  ordinary  use,  but  can  be  readily 
removed  without  detaching  the  cage  from  the  strip. 
And  other  boxwood  blocks  with  plain  celluloid  faces,  for 
various  purposes — all  designed  to  be  interchangeable 
in  sets. 

Third:  Specially  designed  parallel  jaw  pliers  for  set- 
ting or  removing  the  type  in  the  cages. 

Fourth:  JNIonroe  Calculating  ^lachine,  wliicli  is  ex- 
ceedingly flexible,  for  frequent  combinations  of  addi- 
tion, subtraction,  multiplication  and  division. 

We  have  at  present  twelve  control  boards  with  twen- 
ty-four control  curtains,  approximately  2,500  combined 
strips;  15,000  steel  cages;  and  50,000  type  and  marker 
blocks.  All  strips,  cages,  and  type  are  machine  made 
and  can  be  considered  strictly  intercliangeable.  The 
pliers  will  not  slip  from  the  type.  The  type,  in  combi- 
nations of  three,  will  not  fall  from  the  cages,  but  can 
be  drawn  with  the  pliers  without  dislodging  the  cage 
from  the  strip. 

The  boards  were  designed  by  the  writer  and  his  staff, 
and  were  constructed  in  our  works. 

The  primary  idea  in  this  mechanism  is  that  of  a 
universal  bulletin  board,  on  which  any  information  can 
be  placed  in  any  relation.  If  desired,  co-ordinate  rela- 
tions can  be  shown  through  the  mechanism. 

We  have  provided  one  combined  strip  for  each  motor 
car  part  which  we  manufacture.  We  do  not  use  a  strip 
for  any  part  that  we  purchase  finished,  ready  for  assem- 
bly. There  are  a  sufficient  number  of  steel  cages,  so 
that  one  is  available  for  each  operation  which  is  to  be 
controlled — as  patterns  ordered — requisitions  for  pur- 
chase order,  stored  material,  issue  of  material,  ma- 


c 


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69 


70 


THE   TAYLOR   SYSTEM 


chining  to  be  done  at  each  station,  and  stored  parts 
in  finished  stock.  The  cages  are  erected  on  the  strips 
according  to  the  order  of  action  and  standards  of  time. 
At  the  right-hand  end  of  each  control  board  is  an  index 
mark  (zero)  which  represents  the  position  of  the  fin- 
ished car.  Each  half  inch  to  the  left  of  this  position  is 
considered  as  one  work  day.  With  boards  ten  feet  long, 
it  is  evidently  possible  to  provide  for  240  work  days, 
the  time  limit  for  the  production  of  a  lot.  The  name 
and  lot-size  markers  are  erected  on  the  strips  at  the 
right  of  the  operations. 

The  cages  for  the  different  operations  for  the  differ- 
ent parts  are  put  on  their  respective  strips  as  many 
half-inch,  work-day  spaces  to  the  left  of  the  zero  point 
as  the  lot  must  be  started ;  thus  the  lot  can  pass  through 
its  succeeding  operations  to  finished  stock,  and  then 
be  issued  in  proper  quantities  to  assemblies  in  time  to 
be  contained  in  the  finished  car. 

To  illustrate:  In  the  classification  chart  (Figure  1, 
Chapter  III)  the  clutch  drum,  drawing  number  17848,* 
is  shown  as  a  particular  part  in  the  clutch  assembly. 
This  was  detailed  in  the  chart  (Figure  4).  After  pass- 
ing the  operations  shown,  and  the  lot  of  clutch  drums 
has  reached  the  finished  stock,  they  must  be  issued  in 
assembly  quantity  with  other  parts  to  the  assembly 
floor  to  produce  a  lot  of  assembled  clutches.  The  clutch 
must  then  be  assembled  to  the  engine,  the  engine  tested 
and  assembled  to  the  chassis,  the  chassis  tested  and 
assembled  to  the  finished  car,  and  the  car  tested  and 
inspected  before  being  accepted  as  finished  at  the  index 
point.  In  the  same  chart  (Figure  4)  on  No.  3  Punch 
Press,  Operation  No.  4  (3PP4),  work  must  be  com- 
pleted a  considerable   number  of  work  days  before 

*  Drawing  number  has  been  changed  to  21405  in  last  model  car. 


!i  fr 


SCHEDULE,   CONTROL   BOARDS   AND   DESPATCH    TUBES       71 

the  completion  of  the  finished  car  in  which  this  part 
will  be  used.  This  number  of  work  days  plus  the 
sum  of  the  number  of  work  days  required,  or  allotted, 
for  the  last  operation  (Operation  No.  4)  and  the 
time  allotted  for  the  worked  material  inspection, 
which  occurs  immediately  upon  the  completion  of  the 
last  piece  of  the  lot  on  the  final  operation,  establishes 
the  distance  of  the  last  operation  cage  to  the  left  of 
the  zero  point.  The  cage  for  the  operation  immediately 
preceding  the  last  operation  is  then  mounted  as  many 
half -inch  spaces  to  the  left  as  there  are  work  days 
allotted  to  the  next  to  the  last  operation,  per  lot.  The 
other  operation  cages,  the  cage  requisitioning  mate- 
rial, etc.,  are  similarly  located  on  the  strip  for  the 
clutch  drum. 

The  information  provided  for  the  erection  of  the 
cages  on  the  strips  is,  part  name,  drawing  number, 
symbol,  standard  size  of  lot  in  which  parts  move  from 
one  operation  to  the  next,  standard  time  to  be  in  the 
finished  stock  (this  has  been  accepted  as  four  days), 
and  standard  allowance  time  of  one  day  for  each  oper- 
ation in  addition  to  the  actual  producing.  This  pro- 
vides for  time  to  move  between  machines  and  for  in- 
terferences at  machines ;  standard  stores  time  in  which 
the  part  will  remain  in  the  storeroom  after  it  has 
been  received  (10  days) ;  and  standard  purchase  time 
representing  the  number  of  work  days  from  the  requi- 
sition in  the  hands  of  the  Purchasing  Agent  until  the 
time  he  delivers  the  material  into  stores. 

With  these  standards  established  and  recorded,  the 
erecting  clerk  can  erect  each  part  on  its  respective 
strip,  clipping  a  cage  for  each  operation,  as  many  half 
inches  from  the  car  index  point  as  there  will  be  work 
days  required  to  reach  it.    He  then  places  markers  in 


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72 


THE  TAYLOB  SYSTEM 


ll^  H 


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the  lower  part  of  each  cage  to  show  the  symbol  of  the 
station  and  the  number  of  the  operation  there  to  be 
performed.  Once  the  Control  Boards  are  erected  and 
all  cages  placed  they  are  not  changed,  except  as  stand- 
ards mentioned  above  are  changed.  Usually,  on  ac- 
count of  the  extreme  care  taken  in  the  department  of 
standards,  a  large  percentage  of  the  erection  will  stand 
throughout  the  life  of  any  given  design. 

The  movable  feature,  to  provide  for  changing  sched- 
ules, is  the  schedule  tape  at  the  top  of  the  board,  the 
calendar  tape  on  the  straight  edge,  and  the  boxwood 
type  in  the  cages.  The  schedule  tape  progresses  half 
an  inch  to  the  right  each  work  day,  and  indicates  at 
each  cage  what  orders  must  be  issued  to  the  stock  and 
despatch  rooms.  As  each  operation  job  card  is  called 
out  by  the  schedule  tape,  an  order  clerk  enters  on  the 
job  card  the  day  due  on  the  machines.  As  job  cards  are 
posted  in  despatch  room  boxes,  they  are  arranged  in 
order  of  date.  This  provides  explicit  instructions  for 
order  in  which  to  issue  jobs  to  workmen. 

If,  for  any  reason,  this  order  cannot  be  maintained 
on  account  of  material  being  spoiled  or  special  fixture 
on  previous  operation  broken  or  missing,  the  date  is 
not  changed  or  the  card  removed,  but  it  is  marked  with 
the  holding  clause.  When  again  available,  it  assumes 
its  place  in  the  line  of  Control  Board  dating.  The 
figures  posted  in  a  cage  are  sum  totals  of  cars  which 
have  been  satisfied  by  the  particular  operation  since 
the  beginning  of  some  definite  schedule,  as  reported 
through  the  despatch  room.  After  such  posting,  the 
quantity  is  readily  referred  to  its  corresponding  quan- 
tity called  for  on  the  schedule  tape  above.  If  the  num- 
ber on  the  schedule  tape  is  to  the  right  of  a  vertical 
line  above  the  cage,  the  operation  is  behind  schedule ; 


SCHEDULE,   CONTROL  BOARDS  AND   DESPATCH   TUBES       73 

if  the  corresponding  number  on  the  tape  is  to  the  left 
of  the  cage,  the  operation  is  ahead  of  schedule.  If  a 
vertical  line  be  dropped  from  the  number  on  the  tape, 
the  distance  measured  in  one-half  inches  from  this  ver- 
tical line  to  the  cage  will  indicate  the  number  of  work- 
ing days  ahead  or  behind  schedule. 

This  ready  comparison  of  completed  work,  as  posted 
in  the  cages  on  the  Control  Boards,  with  the  scheduled 
output,  as  called  for  by  the  schedule  tape,  can  be  made 
for  any  and  all  operations  on  each  part  or  assembly 
worked  upon,  for  the  various  operations  are  mounted 
on  their  respective  strips  only  at  predetermined  fixed 
locations.  The  progress  on  a  part  needed  a  consider- 
able time  in  advance  of  car  assembly  and  shown 
mounted,  therefore,  toward  the  left  of  the  Control' 
Board  will  be  displayed  as  ahead  of  progress  on  a 
part  needed  at  some  later  date  and  caged  further  to 
the  right  of  the  board,  for  instance.  The  locations  of 
all  cages,  the  set-up  of  the  Control  Boards,  are  deter- 
mined from  the  times  required  for  specific  operations 
and  the  number  of  work  days,  prior  to  the  completion 
of  the  car,  at  which  the  particular  part  is  scheduled 
into  finished  stores  for  subsequent  requisition  to  as- 
sembly. 

The  locations  of  the  cages  on  the  Control  Boards  are 
permanent,  unless — as  occurs  but  seldom — changes  are 
made  in  design,  methods  or  operations,  quite  irre- 
spective of  the  lot  or  schedule.  That  is,  once  a  Con- 
trol Board  has  been  set  up,  it  is  not  altered  in  any 
way  for  a  change  in  schedule.  This  point  is  well 
brought  out  on  the  detail  of  a  Control  Board  shown 
in  Figure  10,  where  one  schedule  is  pictured  expiring 
at  860  and  another  commencing.  The  accomplishments 
as  posted  in  the  various  cages  refer  to  progress  in 


■<  i\ 


It'll 


74 


THE   TAYLOR    SYSTEM 


work  on  the  schedule  for  which  the  schedule  tape  above 
the  particular  operation  cages  is  operative — those 
toward  the  left  of  the  board  mark  progress  on  the 
new  schedule,  while  those  toward  the  right  refer  to 
work  on  the  schedule  nearing  completion. 

The  permanency  of  the  Control  Board  set-up  is  obvi- 
ously one  of  its  desirable  features,  but  occasions  may 
arise  when  it  becomes  advisable  to  advance  produc- 
tion or  to  delay  activity  on  some  particular  part,  or 
parts.  In  such  events,  all  that  is  necessary  is  to  move 
the  set-up  strip  allotted  to  the  part  affected  a  certain 
distance  to  the  left  or  to  the  right — to  the  left  for  an 
earlier  start,  and  to  the  right  for  a  later  commence- 
ment of  work.  The  location  of  the  cages  on  the  strip 
isL  not  altered,  the  strip  simply  moved  horizontally 
across  the  board.  If  the  movement  is  toward  the  left, 
it  means  that  the  various  operations  will  be  called  out 
by  the  schedule  tape  somewhat  earlier  than  would 
otherwise  have  been  the  case  and  within  a  certain 
period  the  completion  of  such  part  will  regularly  occur 
as  many  days  in  advance  of  the  previous  date  of  com- 
pletion as  there  are  half -inch  spaces  through  which 
the  strip  is  shifted.  Movement  of  the  strip  to  the 
right  will  have  the  opposite  effect,  resulting  in  the  com- 
pleted parts  being  turned  into  stores  so  many  days 

later. 

Should  several  lots  of  different  parts  happen  to  be 
waiting  at  some  machine  to  pass,  any  uncertainty  as 
to  which  lot  has  the  right  of  way  is  removed  by  the 
action  of  the  despatch  room  under  instructions  ar- 
ranged in  the  correct  order  by  the  Control  Boards. 
Since  each  of  the  orders  fimdamentally  is  directed  by 
the  single  schedule  tape,  and  since  the  schedule  tape  is 
but  the  schedule  of  the  finished  product  applied  to  each 


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74 


THE   TAYLOR    SYSTEM 


work  on  the  schedule  for  which  tlie  schedule  tape  above 
the  particular  operation  cages  is  operative — those 
toward  the  left  of  the  board  mark  progress  on  the 
new  schedule,  while  those  toward  the  right  refer  to 
work  on  the  schedule  nearing  completion. 

The  permanency  of  the  Control  Board  set-up  is  obvi- 
ously one  of  its  desirable  features,  but  occasions  may 
arise  when  it  becomes  advisable  to  advance  produc- 
tion or  to  delay  activity  on  some  particular  part,  or 
parts.  In  such  events,  all  that  is  necessary  is  to  move 
the  set-up  strip  allotted  to  the  part  affected  a  certain 
distance  to  the  left  or  to  the  right — to  the  left  for  an 
earlier  start,  and  to  the  right  for  a  later  commence- 
ment of  work.  The  location  of  the  cages  on  the  strip 
isL  not  altered,  the  strip  simply  moved  horizontally 
across  the  board.  If  the  movement  is  toward  the  left, 
it  means  that  the  various  operations  will  be  called  out 
by  the  schedule  tape  somewhat  earlier  than  would 
otherwise  have  been  the  case  and  within  a  certain 
period  the  completion  of  such  part  will  regularly  occur 
as  many  days  in  advance  of  the  previous  date  of  com- 
pletion as  there  are  half-inch  spaces  through  which 
the  strip  is  shifted.  Movement  of  the  strip  to  the 
right  will  have  the  opposite  effect,  resulting  in  the  com- 
pleted parts  being  turned  into  stores  so  many  days 
later. 

Should  several  lots  of  different  parts  happen  to  be 
waiting  at  some  machine  to  pass,  any  uncertainty  as 
to  which  lot  has  the  right  of  way  is  removed  by  the 
action  of  the  despatch  room  under  instructions  ar- 
ranged in  the  correct  order  by  the  Control  Boards. 
Since  each  of  the  orders  fundamentally  is  directed  hy 
the  single  schedule  tape,  and  since  the  schedule  tape  is 
but  the  schedule  of  the  finished  product  applied  to  each 


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FlO    JO     IlKTAIL  or  CONTROI.  BDARD. 
Ml'uWINU    UKAtt  AXL.a   Ol'KUATlON* 

.  b.  aamhm  Aam  la  Vu  «»««  on  ttii.  "poHiU  chart  in.liMte  the 

„  l-,t.»i>  of  the  tompUtoa  imru  on  thu  |,arti<  olar  oforalion  to  tho  s.:hea- 

,   ulr  tsiK.  above.     At  tb.-  toi.  of  thf  .  Uart,  th»  ,rh.-.iul..  tiiya  "how.  out 

►•he.liile  fipiriDg  at  s<Ki,  ami  aaothor  schi'dulo  .tarting.    That  i»,  th« 

knifrUnu  al  a.»Krajii  r,.|iiain.  am,l»nt  m  long  u«  iiroJuct  d.«i([n  meth- 

"od.  a»<1   tim»  of  manufacture  remain  the  Mine.     The  changing  of 

„l„.l„U,i  i>  a«r.  .-tea  \,f  the  iKwtiiiK  of  qnaulitief.  in  ca<h  of  the  spacea 

whi.h   rc|.r."..nt.  machines  or  imrti.ulnr  oi.erutioni..     Of  the  lower 

lapeK,  the  upi^r  OB.  lepresents  working  aay,  nn.l  Its  iiro  point  i» 

ihe  poiDt  of  any  given  lot  of  «ui.he.l  cam.     The  location  of  a  cage 

al«.ve  any  numLer  on  thin  tape  inai<at.-.  then  the  numl.er  of  work 

day.,  prio'r  to  completion  of  ear,  when  that  op..mtion  niu«t  b.-  .tarted 

on  a  «tanaard  lot  «i«e  to  secure  the  flnifhea  car  at  the  zero  point. 

The  lower  of  the  two  tapes  ia  a  ealenaar  tape  an.l  .hows  all  calen- 
dar work  dava     On  thia  it  1.  «een  that  June  12  ii  Inimediately  Iwlow 
the  lero  |«int:  that  i.,  the  car,  .on.i.lcred  are  to  he  (ini.hcd  by  June 
12.  Referring  to  thi«  tape,  the  part  »hown  i«  brake  carrier  complete, 
,)a,t.  Drawing  VuroWr  1S145.  mint  1«-  governed  by  the  following  pro- 
ir...  The  No.  3  farhon  Steel  Forging.  Xo.  rnf].-!   Nho.n  to  the  left 
the  chart),  mn«t  be  ordered  not  Inter  than  TI<-eenil"T  1.  to  be  re 
.eived  in  Stores  March  »;  to  be  ir.ned  to  No.  inS  Vice,  Operation  1, 
March  17;  to  No.  Hi  Power  Prill.  OiK-ratlon  Xo.  1,  March  1^;  to  \o, 
'«  Power  Mill,  Op.ration  No.  2,  March  1!);  and  to  No.  M  Power  Mill, 
ration  No.  3,  Mnrch  22;  and  lio  on. 
The  «|iace»  hetwe.'B  Woekii  on  thi«  part  ahow  the  broken  time  to 
1,«  vcrr  nearly  nniform  for  the  unm-  niimber  of  piece,  on  the  different 
operatioiu.    Inspection  of  other  pnri-  ivill  "how  that  «och  rpace<l  vary 
more,  ai  in  the  nnur  all*  tube,  Tlruvn.-  Number  17!>l.4. 


REDUCTION 


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FIG.  10.  DETAIL  OF  CONTROL  BOARD, 
SHOWING  REAR  AXLE  OPERATIONS 


The  numbers  shown  in  the  cages  on  this  special  chart  indicate  the 
relation  of  the  completed  parts  on  the  particular  operation  to  the  sched- 
ule tape  above.  At  the  top  of  the  chart,  the  schedule  tape  shows  one 
schedule  expiring  at  860,  and  another  schedule  starting.  That  is,  the 
imechanical  diagram  remains  constant  so  long  as  product  design  meth- 
ods and  time  of  manufacture  remain  the  same.  The  changing  of 
schedules  is  affected  by  the  posting  of  quantities  in  each  of  the  spaces 
which  represents  machines  or  particular  operations.  Of  the  lower 
tapes,  the  upper  one  represents  working  days  and  its  zero  point  is 
the  point  of  any  given  lot  of  finished  cars.  The  location  of  a  cage 
above  any  number  on  this  tape  indicates  then  the,  number  of  work 
days,  prior  to  completion  of  car,  when  that  operation  must  be  started 
on  a  standard  lot  size  to  secure  the  finished  car  at  the  zero  point. 

The  lower  of  the  two  tapes  is  a  calendar  tape  and  shows  all  calen- 
dar work  days.  On  this  it  is  seen  that  June  12  is  immediately  below 
the  zero  point;  that  is,  the  cars  considered  are  to  be  finished  by  June 
12.  Referring  to  this  tape,  the  part  shown  as  brake  carrier  complete, 
right,  Drawing  Number  18145,  must  be  governed  by  the  following  pro- 
cedure: The  No.  3  Carbon  Steel  Forging,  No.  17905  (shown  to  the  left 
of  the  chart),  must  be  ordered  not  later  than  December  1,  to  be  re- 
ceived in  Stores  March  8;  to  be  issued  to  No.  138  Vice,  Operation  1, 
March  17;  to  No.  13  Power  Drill,  Operation  No.  1,  March  18;  to  No. 
19  Power  Mill,  Operation  No.  2,  March  19;  and  to  No.  20  Power  Mill, 
Operation  No.  3,  March  22;  and  so  on. 

The  spaces  between  blocks  on  this  part  show  the  broken  time  to 
be  very  nearly  uniform  for  the  same  number  of  pieces  on  the  different 
operations.  Inspection  of  other  parts  will  show  that  such  spaces  vary 
more,  as  in  the  rear  axle  tube,  Drawing  Number  17904. 


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SCHEDULE,   CONTROL  BOARDS  AND  DESPATCH   TUBES      75 


I'll 

H 


operation  to  cause  it  to  be  started  in  its  proper  time 
and  sequence,  it  is  evident  that  the  determination  of  a 
finished  car  sales  schedule  provides  an  order  of  work 
directing  all  animate  and  inanimate  forces  in  the  manu- 
factory, 

Eecords  of  the  exact  condition  of  manufacture  are 
obtained  by  photographing  each  Control  Board  face 
once  each  week.  In  proportion  to  the  productive  out- 
put, the  clerical  organization  is  materially  less  than 
under  an  older  form  of  detailed  records  on  route  sheets 
and  assembly  charts.  However,  old  data  are  readily 
accessible,  and,  having  been  photographed,  are  evi- 
dently exactly  as  they  appeared  at  the  time. 

The  Control  Boards  have  been  a  true  economy  both 
in  the  financial  conduct  of  the  office  work  and  in  the 
elimination  of  misapplied  effort  in  the  factory.  They 
have  not  added  to  the  confusion  of  management,  but 
instead  have  so  clearly  mapped  out  the  exact  proce- 
dure in  a  semi-automatic  manner  that  fully  80  per 
cent,  of  the  activities  are  carried  out  according  to  the 
ideals  of  the  management  without  confusion  or  in- 
quiries during  the  life  of  the  schedule,  usually  at  least 
six  months.  They  record  the  acts  emanating  fpm 
the  Planning  Department,  the  management,  and  also 
the  attainments  realized  in  the  shops.  Every  move  of 
the  management  is  directed  and  every  accomplishment 
of  the  workers  recorded.  This  necessitates  a  clearing 
house  for  the  distribution  of  orders,  etc.,  the  despatch 
room  mentioned  in  Chapter  IV. 

Our  plant,  like  the  majority  of  establishments  which 
have  been  built  up  and  expanded  to  care  for  a  growing 
business,  comprises  a  group  of  buildings  more  or  less 
contiguous  and  several  stories  in  height.  The  connec- 
tions between  buildings  are  planned  primarily  for  effi- 


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76 


THE  TAYLOR   SYSTEM 


cient  routing  of  work  through  the  plant,  and  various 
buildings  house  different  departments.  Each  one  of 
these  departments  must  be  connected  with  the  Control 
Boards  for  the  receipt  and  despatch  of  shop  communi- 
cations, etc.,  likewise  the  various  tool  rooms.  A  de- 
spatch room  for  each  department  where  the  workers 
could  hand  in  their  completed  job  cards,  etc.,  and  re- 
ceive new  instructions  (our  former  arrangement)  in- 
volved many  miles  of  messenger  service  each  day,  with 
an  accompanying  loss  of  much  time,  creation  of  con- 
fusion and  liability  of  disturbance  in  the  priority  of 
instructions.  These  decided  disadvantages  have  been 
overcome  and  certain  other  gains  realized  by  substi- 
tuting for  the  various  small  individual  despatch  rooms 
one  large  main  clearing  house  connected  with  the  vari- 
ous shop  departments  with  pneumatic  tubes  for  the 
transmission  of  all  communications.  This  large  de- 
spatch room  is  located  in  the  building  housing  the  Con- 
trol Boards,  adjacent  to  them  and  also  to  the  Planning 
Department. 

Under  the  former  arrangement  of  individual  de- 
spatch rooms,  when  a  worker  finished  a  job  and  desired 
a  i^w  one,  he  would  be  apt  to  find  other  workers  at  the 
despatching  cage  so  that  he  would  have  to  wait  his 
turn  in  handing  in  the  old  and  getting  the  new  job 
ticket.  Often  a  man  would  start  an  argument  over  the 
job  he  was  given  or  the  job  which  he  thought  he  should 
have.  The  clerk  in  the  cage  would  sometimes  be  blamed 
and  at  any  rate  all  the  men  waiting  would  be  delayed 
and  the  production  of  all  of  them  unnecessarily  held  up. 

Under  the  new  arrangement  of  centralized  despatch 
room  there  may  readily  be  more  terminals  in  the  shops 
than  there  were  department  cages  in  the  despatch 
room.    All  the  worker  needs  to  do  on  finishing  a  job 


I 


SCHEDULE,  CONTROL  BOARDS  AND  DESPATCH  TUBES      77 

is  to  insert  the  card  in  the  pneumatic  tube  carrier, 
wait  a  short  time  and  a  new  job  ticket  reaches  him 
through  the  tube.  Although  there  are  approximately 
1,500  jobs  despatched  in  a  day,  there  is  practically  no 
delay  in  getting  the  new  job  ticket  to  the  waiting  work- 
man. 

The  centralization  of  the  machinery  of  putting  work 
through  the  factory  makes  for  a  quick  adjustment  of 
any  difficulties  which  the  worker  may  have  with  regard 
to  machine  or  tool  breakage,  slowness  of  machine  w^ith 
resulting  loss  of  premium,  working  on  jobs  out  of  their 
regular  date  order,  etc.  Also  it  has  eliminated,  as 
stated,  personal  contact  between  the  workers  and  the 
despatching  clerks  and  thus  unnecessary  conversation 
is  a  thing  of  the  past.  The  result  is  a  more  rapid  han- 
dling of  the  jobs  and  a  greater  degree  of  harmony  be- 
tween management  and  men  because  of  the  rapidity 
and  ease  of  adjusting  difficulties,  for  which  often  the 
clerk  in  the  cage  was  unjustly  blamed.  Now,  the 
worker  waiting  at  the  tube  terminal  knows  there  is 
nothing  personal  about  his  designation  to  a  given  job 
and  that  if  the  lot  of  material  is  not  at  his  machine 
or  the  machine  is  inoperative,  the  difficulty  is  easily 
taken  care  of  by  action  of  the  proper  persons  in  fhe 
Planning  Department. 

The  system  comprises  3,500  ft.  of  tubes  in  25  lines, 
three  of  them  3  in.  in  diameter  and  the  remainder 
21/4  in.  The  system  is  operated  by  compressed  air,  an 
electrically  driven  compressor  with  a  35-hp.  motor 
being  provided.  The  carriers  are  of  leather  slightly 
less  in  diameter  than  the  tubes  and  each  is  fitted  with 
a  felt  washer  at  the  bottom  large  enough  to  fit  the 
tube  snugly  and  act  as  a  gasket  or  piston  against  which 
the  air  pressure  acts. 


(1 


.  / 


% 


lil 


78 


THE   TAYLOR   SYSTEM 


At  the  central  despatching  point,  or  pneumatic  tube 
desk,  is  a  row  of  pegs,  one  row  for  each  tube.  When 
a  carrier  has  been  emptied  it  is  invei  led  on  one  of  the 
pegs.  It  remains  there  the  short  interval  required  to 
get  the  new  job  ticket  before  being  returned  to  the  tube. 
The  number  of  inverted  carriers  thus  indicates  the 
number  of  men  waiting  at  a  terminal.  If  three  car- 
riers, for  example,  are  found  inverted  at  one  tube,  it 
follows  that  there  are  three  men  waiting  for  new  tick- 
ets at  the  terminal.  The  work  of  the  despatching  room 
is  done  so  rapidly,  however,  that  seldom  are  there  as 
many  as  three  men  waiting  for  jobs  in  the  same  depart- 
ment. 


*  * 


Chapter  VI 


EMPLOYMENT   AND   EATE   FIXING 


4 


•,4 


DOCTOR  TAYLOR'S  principles  of  Scientific  Man- 
agement stipulate :  First,  the  development  of  the 
science  and,  second,  the  selection  and  training  of  the 
w^orkmen  to  conduct  efficiently  their  share  in  the  co- 
operative activity  developed  under  such  management. 
The  science  is  not  completely  developed  with  the  in- 
troduction of  the  control,  the  assumption  of  the  man- 
agement of  its  logical  and  proper  responsibilities  and 
the  efficient  interchange  of  instructions  and  reports,  as 
discussed  in  preceding  chapters ;  but,  further,  equitable 
rates  and  recompense  must  be  established.  This  is 
part  of  the  development  of  the  science,  and,  at  the  same 
time,  is  the  resultant  consideration  upon  which  the 
selection  (classification)  of  the  workmen  must  depend, 
as  well  as  the  incentive  making  for  their  intensive 
training. 

When  the  mutual  advantage  of  hearty  cooperation 
is  once  grasped,  as  it  tends  to  be  during  the  sane  and 
careful  development  of  the  science,  the  workman  is 
naturally  attracted  to  the  work  he  is  best  fitted  to  per- 
form, and  the  very  human  desire  to  secure  a  high  rate 
of  pay  causes  him  to  strive  for  a  higher  rank  in  his 
class  and  to  acquire  the  necessary  skill  which  demands 
and  assures  promotion.  Thus  the  second  principle  is 
closely  dependent  upon  the  first,  and  it  is  in  fact  diffi- 
7  79 


m 


80 


THE   TAYLOR   SYSTEM 


cult  to  differentiate  between  them  in  an  actual  appli- 
cation of  Doctor  Taylor's  principles  to  the  management 
of  a  present  day  industry.  In  fact,  the  impossibility 
to  demark  strictly  in  the  practical  application  of  these 
fundamental  principles  emphasizes  their  basic  and  in- 
separable co-relationship. 

Selection  is  largely  a  matter  of  employing  the  right 
man  for  the  right  place  and  it  should  be  freed  from  any 
taint  of  favoritism.  In  an  organization  composed  of 
a  considerable  number  of  departments  (as  is  ours) 
this  can  be  best  secured  by  concentrating  the  authority 
of  employment  and  discharge  in  one  person  who  is 
directly  responsible  to  the  management.  This  concen- 
tration of  authority  eliminates  as  far  as  possible  the 
evils  arising  from  the  entrance  of  the  personal  equa- 
tion into  the  employment  problem,  and  that  this  per- 
sonal equation  should  most  certainly  be  eliminated  is 
evidenced  by  the  fact  that  the  promotion  and  demotion 
of  workers  in  a  very  large  part  of  our  industrial  popu- 
lation is  based  on  about  20  per  cent,  efficiency  and  80 
per  cent,  personal  relationship. 

In  our  system,  an  Employment  Manager  has  the  sole 
right  to  employ  or  discharge  men,  but  no  one  is  em- 
ployed who  is  not  also  satisfactory  to  the  Supervisor, 
or  Foreman,  of  the  department  in  which  he  is  to  work. 
And,  while  the  Supervisor  cannot  discharge  a  man 
without  the  approval  of  the  Employment  Manager,  he 
has  the  right  temporarily  to  suspend  any  man  against 
whom  he  has  a  charge  until  the  case  at  issue  has  been 
investigated,  or  any  man  for  whom  there  may  be  insuf- 
ficient work.  If  the  worker  cares  to  appeal  and  if  his 
contention  is  sustained,  yet  it  does  not  seem  desirable, 
on  account  of  personal  relations,  to  return  him  to  the 
department  from  which  he  was  removed,  nothing  should 


.MiMfirj^-if--' 


,^,Sp.,,M'-hy!^ii^-'r^-T^--;-'vr^~ 


'i 


EMPLOYMENT   AND   RATE    FIXING 


81 


preclude  his  being  transferred  to  another  department. 
One  of  the  first  steps  we  took  in  relation  to  the  em- 
ployment problem  was  the  issuance  of  the  following 
order : 

"To  All  Foremen  and  Despatch  Clerks 
Subject: — discharges  and  disciplinary  measures 

Workmen  whose  records  show  that  they  cannot  do 
the  work  satisfactorily  in  the  department  in  which  they 
are  located  may,  after  proper  consideration  by  their 
Foreman,  be  released  from  that  department,  but  not 
from  the  employ  of  the  Company. 

The  Employees  Eecord  Card  (Form  A-210)  must  be 
filled  out  by  the  Foreman  and  sent  to  the  Employment 
Superintendent  for  investigation.  The  Time  Office 
will  recognize  only  those  payment  cards  signed  by  the 
Employment  Superintendent  and  endorsed  by  the 
writer. 

When  a  workman  violates  the  Company's  rule,  he 
must  be  sent  to  the  Employment  Superintendent  and 
the  complete  facts  reported  at  once  to  the  latter  by  the 
Foreman. 

Payment  and  Eecord  Cards  (Form  A-36)  will  here- 
after be  made  out  by  the  Employment  Superintendent 
only  after  the  workman's  case  is  investigated  and  the 
circumstances  warrant  discharging  him. 

Foremen  only  have  departmental  disciplinary  au- 
thority. The  Employment  Superintendent  shall  act  on 
the  merits  of  each  case  in  a  fair  and  impartial  manner." 

This  created  a  court  of  appeal  which,  when  fully  un- 
derstood and  properly  used  by  the  workmen,  satisfac- 
torily solved  one  of  the  most  trying  and  bitter  problems 
affecting  the  employment  of  labor.    Its  object  is  equity 


i 


I 


■If 


82 


THE    TAYLOR    SYSTEM 


and  fairness,  both  to  the  organization  and  to  the  work- 
men. In  order  that  the  Supervisor  may  not  abuse  his 
authority  of  suspension,  it  is  necessary  that  the  work- 
man appreciate  in  full  his  right  of  appeal.  Occasional 
instances  did  occur  in  our  plant  during  the  development 
of  our  system  of  management  where  men  were  un- 
justly suspended  for  indefinite  periods.  Such  unjust 
suspensions  were  invariably  due  to  personal  prejudice 
on  the  part  of  the  foremen,  a  failing  which  is  unfortu- 
nately human,  but  nearly  always  antagonistic  to  the 
best  interests  of  the  organization,  and  one  which  must 
not  be  allowed  scope  under  Scientific  Management. 
The  remedy  lies  in  the  right  to  appeal,  and  when  the 
men  realize  that  this  appeal  is  not  only  their  right,  but 
their  duty,  unwarranted  suspensions  are  much  less 
likely  to  occur.  Such  has  been  our  experience,  and  it  is 
deserving  of  note  by  every  management  and  all  work- 
men. We  invite  the  investigation  of  all  grievances,  and 
justice  must  result  under  a  system  of  management  in 
which  all  work  to  a  common  end,  with  the  same  funda- 
mental interests. 

Justice  must  be  the  cornerstone  for  fair  and  satis- 
fied employment,  and  likewise  must  be  the  basis  for 
fair  and  equitable  recompense,  both  to  management 
and  to  workmen.  This  is  the  groundwork  of  Scientific 
Management  as  we  see  and  practice  it— an  equitable 
division  of  work,  just  treatment  and  fair  recompense. 
The  men  are  virtually  set  up  in  business  for  them- 
selves and  must  give  their  best,  both  for  their  own 
interest  and  that  of  the  organization.  Fundamentally 
it  directs  first  towards  individualism  and  then  to 
group  action  which  will  finally  culminate,  when  com- 
pleted, to  concerted  action  for  all  classes,  and  trades 
towards  common  interests — ^in  no  sense  antagonistic  to 


M\ 


EMPLOYMENT    AND    RATE    FIXING 


83 


the  welfare  of  the  management.  It  provides  for  a 
gradual  movement  from  the  lowest  worker  through 
the  master  workman  and  foreman  into  managerial  staff 
positions.  There  is  no  sharp  lifie  of  demarkation  be- 
tween the  worker  and  the  management.  It  not  only 
does  not  lead  to  profit  sharing,  but  provides  the  full 
profits  of  the  work-lines.  This  not  only  provides  for 
the  full  profit  of  the  managerial  effort  returns  to  the 
management,  but  it  tends  to  stimulate  personal  devel- 
opment through  assistance  given  in  the  learning  of  new 
trades  and  processes  by  the  worker,  and  by  monetary 
recognition  when  such  increased  knowledge  is  attained ; 
it  provides  a  monetary  value  for  years  of  service;  it 
provides  fcr  a  definite  retainer,  if,  for  any  reason,  the 
worker  is  suspended  from  task  work  upon  which  he 
could  make  extra  earnings  for  extra  effort,  and  is 
caused  to  work  on  straight  hourly  time,  the  retainer  is 
proportional  to  his  effort  when  under  task.  From  these 
extra  allowances,  which  are  normally  much  above  a  pre- 
vailing rate,  are  deducted  amounts  to  cover  losses  due 
to  lates  and  absences  and  spoiled  work. 

As  interpreted  by  us,  the  application  of  such  equita- 
ble co-operative  activity  follows:  The  assumption  is 
carried  out  that  the  management  will  provide  space, 
heat,  light,  sanitation,  service,  machine,  tools,  and 
methods  to  the  worker;  that  after  the  management 
has  established  a  time  cost  for  the  part,  any  effort  of 
the  worker  which  tends  to  reduce  the  cost  will  be  recog- 
nized by  the  full  payment  to  him  of  any  saving.  The 
saving  in  cost  includes  not  only  the  saving  of  his  own 
time  but  also  those  fixed  charges  which  his  saving  of 
time  will  save.  If  the  investment  placed  within  his 
hands  is  misused,  or  if  he  sees  fit  to  close  up  shop, 
throwing  the  incidental  burden  thereof  on  the  manage- 


^ 


84 


THE   TAYLOR   SYSTEM 


ment,  when  he  again  comes  in  the  employ  after  an 
absence  of  a  few  hours,  or  not  more  than  three  days, 
he  pays  back  the  losses  which  have  occurred,  if  he 
still  desires  to  retain  his  position.     This  is,  obviously, 
not  paid  back  in  a  lump  sum,  but  on  the  next  wage 
rate  adjustment  (quarterly  the  base  rate  of  pay  for 
each  workman  is  revised)  the  wage  rate  is  reduced  an 
,  amount  which,  during  the  three  months  period  of  its 
run,  will  compensate  for  such  loss.     The  method  indi- 
cates the  aggregation  of  a  number  of  small  shops  each 
manned  by  one  worker  receiving  community  service, 
in  which  investment  responsibility  when  not  in  use 
falls  upon  the  management,  and  in  which  the  worker 
assumes  the  responsibilities  which  are  naturally  his  if 
he  assumes  to  operate  that  shop. 

The  establishment  of  an  hourly  rate  of  pay  equitable 
for  all  concerned  involves  the  consideration  of  a  num- 
ber of  factors  which  must  bear  a  definite  and  intimate 
relationship  to  one  another.  This  may  be  conveniently 
expressed  in  the  form  of  a  general  equation,  or  special 
formula.  The  general  equation  for  the  basic  rate, 
where  the  premium  method  of  payment  is  used,  as 
deduced  by  us  is 

"-[\V   (l+1.3A'-.3e)  (l-f.35PJ-hi;  (^'+^«ia+.5.))Jc 

and  for  the  determination  of  labor  and  indirect  cost 
(not  including  materials)  is : 

X=={r{l  +  e)+R)t 

The  definitions  of  terms  follow.    They  are  common 
in  both  equations : 

r  =  Base  hourly  rate  man  is  to  receive 

K  =A  constant,  when  V  is  100  per  cent.,  to  bring 


EMPLOYMENT   AND   RATE    FIXING 


85 


B 


worker  under  standard  conditions   to   standard 

rate 

Fundamental  base  rate,  temporarily  that  of  1905 


w 


n 


=  Percentage  of  increase  in  living  since  1905,  taken 
on  the  15th  of  January,  April,  July  and  October 
of  each  year 
=  Percentage  allowed  for  each  extra  process  known 

or  learned 
==  Percentage  allowed  for  years  of  connected  serv- 
ice 

y  =  Years  of  such  service 
R  =  Fixed   charges   rate  per  hour  which  man  has 

chance  to  modify 
e    =  Percentage  of  premium  earned  on  time  allowance 
V  =  100,  which  is  the  standard  accomplishment  per 

cent. 
E  =  Standard  premium  task  time  set 
Pa  =  Percentage  of  time  absent  or  late 
S  =  Value    of    spoiled    work    per    producing    hours 

worked 
Pt  =  Percentage  of  time  under  task 
Pd  =  Percentage  of  time  spent  on  non-task  or  straight 

.     time  work 
C  =  Co-operation  and  conduct 
X  =  Labor  and  fixed  charge  cost 
t   =  Time  taken  to  do  work 
Note  :  See  Form  I  and  la  for  analytical  statement. 
Co-EFFiciENT  (K), — Siuce  in  a  factory  of  many  proc- 
esses, or  in  different  factories,  a  very  considerable  dif- 
ference in  skill  is  required,  there  is  consequently  a  vary- 
ing base  wage.    To  illustrate :  A  laborer  may  receive  20 
cents  per  hour,  and  a  skilled  toolmaker  50  cents  per 
hour.     However,  the  fixed  charge  rate  (R)  may  be 
very  high  or  low  depending  on  the  investment  value  of 


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THE   TAYLOR    SYSTEM 


equipment  which  the  operator  attends.  At  the  stand- 
ard rate  point  for  workers  operating  exactly  to  stand- 
ard, where  the  fundamental  base  rate  and  fixed  charge 
rate  are  identical,  the  constant  (A')  and  the  rate  (r) 
will  be  the  same.  As  the  fundamental  base  rate  or 
fixed  charge  rate  changes,  (K)  will  change  and  conse- 
quently rate  (r).  (K)  is  first  determined  for  a  class  by 
inserting  the  established  standards  in  the  equation  and 
solving  for  (K),  It  is  then  used  in  each  future  de- 
termination for  (r^ 

Fundamental  base  bate  {B), — The  fundamental 
base  rates  have  been  temporarily  taken  as  the  prevail- 
ing wage  rate  for  men  who  worked  by  the  hour  with- 
out task  in  the  year  1905  (See  Appendix  I,  page  169). 
Careful  study  of  a  long  period  of  years  through  our 
records  showed  relatively  less  turn-over  of  labor  in 
that  year  than  in  any  other  for  a  very  considerable  time 
before  or  since. 

Wage  increases  were  relatively  frequent  and  uni- 
form for  the  years  1904-5-6.  Altogether  it  seemed  to 
have  been  a  period  when  the  working  community  was 
in  good  condition  and  workers  were  able  to  obtain  sat- 
isfactory wage  rates  without  difficulty.  No  attempt 
has  been  made  as  yet  to  determine  the  correct  wage 
rate  for  the  workers  or  in  any  way  to  establish  funda- 
mental  values  for  their  efforts,  but  this  fact  has  been 
established,  if  the  base  wage  rates  of  1905  were  then 
equitable,  our  base  wage  rates  are  now  equitable. 
Then,  workers  received  no  premium  or  extra  recom- 
pense. It  was  a  period  during  which,  however,  it 
seems  the  workers  received  a  fair  and  adequate  wage 
for  their  industry.  Since  the  base  wage  rate  of  to- 
day is  the  wage  rate  of  1905  with  full  alloivance  for 
the  increase  in  living  cost  in  this  district,  with  an  in- 


employment  and  rate  fixing 


89 


crease  for  years  of  continued  service,  and  with  increase 
for  acquiring  a  knowledge  of  extra  processes,  their 
base  wage  rate  is  now  proportionally  greater  than  iu 
1905.  In  addition  to  this  base  wage  rate  there  has  fur- 
thermore been  added  a  premium  rate  for  special  effort 
in  which  the  first-class  worker  can  and  does  regularly 
earn  from  33  to  40  per  cent.,  and  sometimes  higher, 
as  an  additional  wage.  This  means  that  the  worker 
today  receives,  as  an  average,  30  per  cent,  more  than 
he  did  in  1905,  in  addition  to  allowance  for  extra  liv- 
ing expense,  years  of  service,  and  acquired  learning. 

The  base  wage  rates  of  1905  in  the  trade  classes 
which  we  employ  are  shown  in  Appendix  I,  page  169. 
It  is  my  opinion  that  there  is  but  one  fundamental 
base  rate  and  that  is  the  rate  which  that  worker  should 
receive,  who,  by  virtue  of  lack  of  training  or  mental 
development,  is  least  productive.  With  this  as  a  base 
all  other  trades  and  crafts  can  be  raised  to  standard 
base  wage  rates  as  a  percentage  on  this  one  funda- 
mental base  wage  rate.  The  percentage  of  variation 
would  be  measured  by  the  relative  cost  of  training  the 
untrained  worker  to  qualify  in  any  one  of  the  various 
skilled  trades. 

There  is  at  present  a  wide-spread  effort  for  the  de- 
velopment of  young  men  and  women  into  skilled  trades, 
but  so  far  very  little  has  been  done  to  train  the  ma- 
tured man,  and  in  fact  very  little  encouragement  is 
being  given  to  him  to  put  forth  effort  to  such  an  end. 

The  percentage  of  increase  in  living  cost  (i), — To 
determine  the  relative  cost  of  a  day's  living  in  the  dis- 
trict surrounding  our  works  in  which  a  large  propor- 
tion of  our  workers  live,  and  to  develop  standards  for 
comparison  in  succeeding  years,  a  very  thorough  study 
of  such  conditions  was  made  by  the  company.     No 


Sll 


I 


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iliU 


0 


<:     !l 


I 


.  ! 


90 


THE   TAYLOR   SYSTEM 


attempt  was  made  to  establish  the  amount  that  a 
worker  should  live  on,  but  only  to  ascertain  the  in- 
creased cost  of  sufficient  items  so  that,  given  reasonable 
figures  or  proportions  by  the  workers,  a  percentage  of 
variation  between  the  living  cost  in  1905  and  that  in 
subsequent  years  could  be  obtained.  In  this  study, 
food,  clothing,  fuel,  and  shelter  were  the  principal 
items  in  which  comparisons  were  sought.  While  the 
items  of  food  or  clothing  as  expressed  in  the  menus 
or  clothing  lists  did  not  seem  to  be  well  balanced  in 
the  different  meals  of  the  day  or  different  seasons  of 
the  year,  it  was  not  attempted  to  cover  all  items  that 
might  possibly  be  considered,  but  only  to  adopt  certain 
standard  items  about  which  there  could  be  no  question 
of  obtaining  local  market  rates  on  the  same  bases  from 
year  to  year.  The  selections  as  to  food,  fuel,  and  cloth- 
ing were  finally  determined  after  a  very  considerable 
number  of  conferences  with  workers.  From  the  sum- 
mary, the  "Percentage  of  Increase"  over  1905  (i.e., 
since  the  time  of  the  fundamental  base  rate)  is  used 
directly  in  the  equation  as  the  term  (i).  The  sum- 
mary of  the  research  is  recorded  in  Appendix  I,  page 
173. 

Percentage  allowance  for  processes  (m). — The  re- 
lease and  employment  of  workers  are  possibly  about 
twice  as  frequent  on  account  of  limited  knowledge  as 
for  wilful  leaving  or  discharge.  In  any  industry  work- 
ing on  a  complex  product,  temporary  shortages  of  ma- 
terial or  temporary  hold-ups  on  any  one  operation  for 
parts  having  a  large  number  of  operations  may  cause 
a  suspension  of  work  in  the  producing  line.  If  the 
worker  in  that  line  is  trained  only  for  his  particular 
act,  practically  nothing  can  be  done  but  release  him 
from  service  for  an  indefinite  time.    In  the  same  shop 


employment  and  rate  fixing 


91 


•X 


and  possibly  not  more  than  two  or  three  machines  re- 
moved from  where  he  was  working  is  a  machine  with 
plenty  of  material  waiting  for  it  and  with  the  worker 
absent  for  any  one  of  a  number  of  reasons.  For  this 
machine  the  foreman  or  employment  representative  is 
probably  trying  to  engage  a  man  who  can  do  the  work. 
Such  an  unbalance  in  productivity  is  practically  con- 
stant, one  class  of  work  behind,  and  another  class  of 
work  ahead. 

There  is  no  question  but  what  the  cost  of  employ- 
ment, training  of  a  man  in  organization  methods,  losses 
due  to  slow  operation  on  machine,  and  spoiled  work  is 
considerably  larger  in  a  factory  doing  refined  work 
than  has  so  far  been  stated  as  a  fact  by  persons  who 
have  given  this  subject  detailed  study.  The  cost  of 
training  a  worker  of  mechanical  ability  on  one  proc- 
ess to  do  another  successfully  so  as  to  be  in  readiness 
for  such  an  emergency,  and  the  additional  cost  of 
a  reasonable  addition  to  his  rate  to  make  it  interest- 
ing and  worth  while  for  him  to  so  learn,  will  not  equal 
in  two  years  the  cost  of  once  employing  an  unknown 
outside  man.  The  periods  in  which  such  assistance 
would  be  required  are  of  relatively  short  duration, 
and  in  the  course  of  two  years  would  probably  necessi- 
tate the  employment  and  laying  off  of  a  large  number 
of  men,  were  it  not  for  the  inside  assistance  we  are 
enabled  to  secure  by  the  training  of  men  for  more  than 
one  task. 

We  have  for  the  time  adopted  a  rate  of  4  per  cent, 
for  each  full  process  more  than  one  that  the  worker 
has  acquired  or  will  learn  to  do ;  and  furthermore  we 
will  furnish  an  instructor  in  any  process  to  any  worker 
who  really  desires  to  learn  and  we  will  pay  the  time  of 
such   instructor  through   the   teaching   period.     The 


■-r! 


^ 


II 


92 


THE   TAYLOR    SYSTEM 


worker  accepted,  after  his  attainment  has  been  passed 
upon  by  the  factory  inspectors  and  the  foreman,  will 
receive  his  process  rate  allowance  after  he  has  worked 
any  full  period  of  three  months  at  the  process.  Proc- 
esses are  sub-divided  into  divisions  of  one-half  or  one- 
quarter,  and  fractional  credit  is  given.  The  list  of 
standard  processes  at  present  in  use  are  shown  in 
Appendix  I,  page  170. 

Percentage  allowance  for  each  year  of  continued 
SERVICE  (w). — For  the  loyalty  which  develops  in  em- 
ployees who  have  been  long  in  service;  for  the  his- 
torical knowledge  which  they  have;  for  the  esprit  de 
corps  which  comes  through  long  periods  of  association 
of  men;  as  well  as  for  a  reduction  in  the  frequency  of 
labor  turn-over,  2i/^  per  cent,  of  the  base  wage  rate  is 
allowed  for  each  year  of  collected  service.  If  a  man 
wilfully  leaves  the  employ  of  the  Company  when  we 
wish  to  retain  him,  and  he  is  again  employed,  he 
sacrifices  the  credit  for  years  of  service.  However, 
when  it  becomes  necessary  to  reduce  the  number  of 
employees,  and  the  men  are  removed  from  service  by 
the  Company,  if  they  return  within  a  year  no  change 
is  made  in  the  rating.  If  they  return  after  an  ab- 
sence of  one  year  or  more,  the  years  of  absence  only 
are  deducted  from  the  rating.  While  the  employment 
charge  cannot  be  escaped  in  such  a  case,  practically 
no  other  costs  are  generated  by  such  employment. 

The  fixed  chargTes  rate  (R). — Workers  operate  un- 
der widely  varying  responsibilities.  In  workshop  pro- 
duction, the  hourly  fixed  charges  of  a  sensitive  drill  of 
very  small  size  is  insignificant  compared  to  a  large 
stamping  press,  or  milling  machine,  or  planer.  Space, 
heat,  light,  sanitation,  machine  interest  and  deprecia- 
tion charges,  and  service  provided  for  the  worker  and 


!P^ 


>..  i^i-     ■"■'■-  -■■'•^- J-    ..^— >.— f-    ---- — ■ 


EMPLOYMENT   AND   RATE    FIXING 


93 


his  machine  will  vary  from  a  fraction  of  a  dollar  to 
several   dollars   per  hour   in   fixed   charges.      These 
charges  are  continuous  true  expenses,  not  affected  by 
active  operations  within  the  space.    One  hour  of  idle- 
ness may  mean  a  charge  of  from  50  cents  to  five  dol- 
lars against  the  product,  for  which  there  is  no  return. 
If  one  worker  operates  a  machine  having  fixed  charges 
of  one  dollar  per  hour,  and  does  a  certain  piece  of 
work  in  one  hour,  the  fixed  charge  per  piece  will  be 
one  dollar.    If  another  operator  performs  the  work  in 
one-half  the  time,  the  fixed  charge  per  piece  will  be  one- 
half  dollar.    If  the  work  be  on  a  piece  rate  system  and 
the  rate  is  fifty  cents  per  piece,  the  total  piece  cost  in 
the  first  case  of  one  hour  will  be  $1.50,  in  the  second 
case  $1.     In  the  first  case  the  worker  receives  fifty 
cents  per  hour,  in  the  second  case  $1  per  hour.    That 
is,  when  the  worker  received  the  least  amount  meas- 
ured on  the  basis  of  comparative  performance,  the 
total  cost  was  50  per  cent,  more  than  when  the  worker 
received  a  double  earning  for  doubled  effort.    Under 
such  a  plan,  while  in  the  second  case  the  worker  re- 
ceived double  the  amount  for  double  the  effort,  the 
management  likewise  made  a  profit  of  fifty  cents  per 
piece.    The  important  point  is  this,  if  the  management 
was  in  entire  accord,  or  had  set  or  agreed  to  the  rate 
of  operation  as  specified  in  the  first  case,  and  the 
worker  willingly  and  wilfully  cut  the  time  in  two  by 
personal  thoughtful  effort,  then  the  worker  should 
receive  an  additional  amount  over  and  above  his  wage 
rate  saving  equal  to  his  saving  of  investment  charges. 
It  is  obvious  that  this  is  an  exaggerated  case.    There 
is  little  probability  that  the  management  with  full  in- 
telligence and  proper  care  would  establish  a  rate  as 
illustrated  in  the  first  case.    However,  in  the  major- 


I 


^1 


i 


1 1 


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II'  •  > 


94 


THE   TAYT.OR    SYSTEM 


itj'^  of  cases  after  the  management  has  established  what 
it  is  satisfied  is  a  fair,  equitable  rate,  and  if  at  such 
time  the  worker  co-operated  with  the  management  to 
establish  as  fair  a  rate  as  he  could,  then  it  is  only  right 
to  assume  that  the  extra  effort  has  been  attained 
through  extraordinary  thought  and  care  on  the  part 
of  the  worker,  and  he  should  receive  the  fruits  of  his 
efforts.  Conversely,  if  after  an  equitable  rate  has  been 
established,  and  the  worker  through  negligence  creates 
a  high  cost,  then  his  base  wage  rate  should  be  so  ad- 
justed that  the  management  will  not  lose  on  account  of 
his  negligence.  This  should  be  equally  true  for  any 
idleness  or  spoilage  of  equipment  or  materials  on  ac- 
count of  the  carelessness  or  negligence  of  the  worker. 

It  is  evident  that  by  this  method,  if  the  management 
expects  reduction  of  costs  beyond  that  for  a  set  task, 
the  provision  of  new  methods,  better  equipment  and 
machinery,  reduction  in  investment  charges,  or  in- 
creases in  quantity  of  output  is  the  way  in  which  to 
secure  it. 

The  worker  is  not  "exploited"  in  any  sense  of  the 
word.  The  way  is  always  open  for  him  to  learn  new 
processes;  with  continued  years  of  service  and  with 
willingness  and  ability  to  assume  larger  responsibil- 
ities which  in  a  tangible  way  means  space  with  larger 
fixed  charges.  It  is  but  a  step  from  this  to  the  "mas- 
ter workman,"  when  he  assumes  the  responsibility  of  a 
group,  or  to  the  foreman  when  he  assumes  the  re- 
sponsibility of  a  department.  A  comparative  state- 
ment of  cost  and  earnings  of  one  of  our  crank-shaft 
grinders  is  shown  at  the  end  of  the  article.  (See 
Appendix  I,  page  174).  This  brings  out  clearly  the 
importance  of  the  fixed  charges  rate. 

Percentage  of   premium   earned    (e). — For    some 


EMPLOYMENT   AND   RATE    FIXING 


95 


years  previous  to  our  adoption  of  the  Taylor  System, 
we  had  been  operating  under  a  premium  system.  This 
was  conducted  approximately  as  follows: 

A  department  with  a  number  of  clerks  was  employed 
to  record  the  actual  time  consumed  by  the  worker  on 
each  operation.  After  such  record  had  been  main- 
tained until  the  rate  of  effort  approximated  a  constant 
value,  a  premium  rate  was  set ;  this  premium  rate  was 
made  evident  to  the  workman  by  a  notice  to  him  that 
for  any  time  which  he  could  save  on  that  operation, 
as  compared  to  his  previous  average  performance,  he 
would  be  paid  at  one-half  the  rate  in  addition  to  his 
regular  rate.  That  is,  if  the  worker  had  established  a 
rate  of  30  minutes  for  an  operation,  and  he  saved  10 
minutes  after  the  rate  had  been  set,  he  would  then 
receive  pay  for  35  minutes  for  each  30  minutes  which 
he  worked  and  rates  proportional  for  any  given  time 
of  saving.  Under  this  plan  it  was  evidently  left  en- 
tirely to  the  worker  and  to  his  own  ingenuity  and  per- 
sonal effort  as  to  methods  of  saving  time — the  manage- 
ment in  no  sense  contributing  to  the  saving — and  for 
such  time  as  he  saved  he  received  one-half  rate  onlv. 
The  management  profited  by  one-half  the  labor  cost 
and  all  the  fixture  cost  for  the  time  saved.  With  the 
advent  of  Scientific  Management,  the  management  at 
once  assumed  its  full  responsibility  to  establish  meth- 
ods and  mechanisms,  and  by  virtue  of  an  exhaustive 
research  to  determine  what  was  a  fair  time  in  which 
the  work  could  be  done.  In  general,  at  the  time  of 
such  determination  and  research  on  account  of  funda- 
mental time-study  having  been  used,  both  the  worker 
and  time-study  observer  were  practically  eliminated 
from  any  major  influence  on  the  result. 

Our  time-study  work  has  been  directed  by  Dwi^ht 

8 


5  I 


M 


96 


THE   TAYT.OR   SYSTEM 


V.  Merrick,  one  of  Mr.  Taylor's  personal  associates, 
and  Mr.  Merrick  is  in  frequent  consultation  with  our 
time  study  organization.  The  main  responsibilities  and 
resultant  rates  depend  upon  men  who  have  had  a  large 
amount  of  mechanical  experience,  or  a  considerable 
amount  of  mechanical  experience  with  a  rather  com- 
plete technical  education. 

As  described  in  Chapter  III,  a  standardization  of 
machine  feeds  for  all  equipment  in  the  works  was 
made,  and  mechanical  movements  and  rate  of  move- 
ment were  recorded,  so  that  for  any  mechanical  opera- 
tion the  machine  time,  the  depth  of  cut,  or  the  speed 
and  feed  are  determined  and  specified,  the  handling 
time  only  being  the  irregular  variable.  Since  the  time 
study  has  been  taken  on  a  given  operation  for  a  very 
large  number  of  parts,  and  each  element  of  the  study 
which  requires  more  than  2/100  of  a  minute  is  re- 
corded, the  various  elements  are  readily  compared  and 
variations  in  time  taken  on  each  element  noted. 
Through  a  standard  procedure,  the  base  time  required 
is  determined.  With  the  addition  of  average  allow- 
ances for  unexpected  conditions  not  involved  in  the 
study,  a  final  rate  for  the  part  is  set,  this  rate  being 
the  number  of  minutes  in  which  the  work  should  be 
completed.  As  a  means  of  providing  recompense  to 
the  worker  for  his  constant  attainment  of  this  rate, 
and  to  interest  him  in  bringing  to  the  attention  of 
the  management  any  feature  which  precludes  his  mak- 
ing the  rate,  additional  allowance  time  of  60  per 
cent,  is  added  to  the  flat  work  rate,  and  the  final  time 
allowance  is  published.  Thereafter  for  any  time  which 
the  worker  saves  on  that  allowance  time,  he  is  paid 
for  one-half  that  time ;  but  the  management  has  knowl- 
edge  on  account  of  its  pre-planning  that  the  time  taken 


EMPLOYMENT   AND   RATE   FIXING 


97 


should  be  the  definite  base  time  and  therefore,  it  is 
expected  with  slight  variation  that  the  worker  will 
save  one-half  the  60  per  cent,  allowance  time  and  will 
be  paid  for  this  one-half,  or  30  per  cent,  in  addition 
to  his  flat  base  rate.  There  is  no  particular  reason 
why  a  flat  hourly  rate  including  the  percentage  for 
accomplishment  should  not  be  set.  Our  chief  reason 
for  continuing  the  present  premium  plan  is  that  it  has 
been  a  particular  procedure  at  the  works,  and  is  espe- 
cially adaptable  for  the  present  rating  plan. 

If,  then,  a  record  be  kept  of  the  percentage  of  pre- 
mium time  which  the  worker  earns,  a  figure  which  is 
used  in  the  compiling  of  pay-rolls  and  costs,  it  is  rela- 
tively easy  to  reduce  this  to  the  approximate  per- 
centage of  time  saved  by  multiplying  by  two.  While 
this  is  not  mathematically  correct,  within  the  limits  of 
the  figures  used  it  is  sufficiently  so.  The  rate  of  pro- 
ductive effort  is  thus  seen  to  be  one  of  the  principal 
elements  in  the  rating. 

Standard  premium  task  time  (E). — This  value  is 
the  percentage  of  premium  which  the  wiJLrker^shouJd 
earn  as  against  (e)  the  percentage  of  premium  which 
he  actually  does  earn.  The  simplifying  of  the  equa- 
tion has  made  it  somewhat  difficult  to  appreciate  the 
relation  of  this  term  in  the  equation.  In  practice  its 
influence  is  to  recompense  the  management  for  time 
losses  of  fixed  charges  on  account  of  the  slowness  of 
the  worker. 

Percentage  of  time  for  absence  or  lateness  (Pa). — 
On  a  closely  fitted  schedule,  in  which  the  mechanical 
equipment  is  adjusted  as  nearly  as  possible  to  exact 
needs,  yet  with  a  minimum  of  fixed  investment,  any 
absence  of  the  worker  will,  in  general,  cause  a  corre- 
sponding overtime  effort  by  that  worker,  or  by  a  worker 


I 


♦ 


I 


M 


I        i 

t      I 


98 


THE   TAYLOR    SYSTEM 


substituting  for  liiin.  Since  our  overtime  rates  carry 
one-third  allowance  to  the  regular  rate  both  on  base 
.  rate  and  on  premium  earning  rate,  it  is  only  equitable 
that  any  conduct  of  the  worker  which  will  cause  the 
overtime  work  to  be  required  should  be  adjusted  by 
his  rating.  It  has  not  been  unusual  to  have  a  worker 
absent  himself  for  a  part  of  the  hours  during  the  day, 
and  then  work  overtime  for  the  sake  of  the  extra  over- 
time pay.    (See  Form  II— Fig.  13.) 

Correction  for  work  spoiled  (aS').— The  problem  of 
spoiled  work  on  either  a  work-day  or  task  rate  plan 
has  been  a  most  difficult  one  to  handle.  It  is  difficult  to 
decide  what  should  be  done  with  a  careless  worker 
who,  while  working  fast,  possibly  earning  high  premi- 
ums, will  spoil  a  large  amount  of  work,  or  for  the 
straight  hourly  rate  worker  who,  in  our  experience, 
spoils  practically  as  much.    It  is  certainly  not  equita- 
ble for  such  a  man  to  receive  as  great  a  recompense 
as  the  man  who  is  careful  and  has  a  small  spoilage, 
and  there  has  been  but  practically  one  redress,  and  that 
is  discharge.    If  each  operation  on  each  piece  that  the 
worker  does  must  be  inspected,  the  overhead  charges 
become  very  large.   If  inspection  is  less  frequent,  losses 
may  occur  and  not  be  discovered  until  a  very  consider- 
able time  afterward.    At  any  rate  spoilage  is  so  fre- 
quent,   of   such   an   amount,    and    almost   invariably 
traced  to  carelessness,  that  the  management  cannot 
withdraw  from  the  workman's  pay  at  a  later  date  at 
one  time  an  amount  sufficient  to  cover  the  loss.    The 
cost  of  the  product  thereby  suffers.    Our  wage  rates 
are  set  for  high  performance  without  spoilage — not  as 
prizes  awarded  for  little  spoilage. 

The  amount  to  deduct  for  spoiled  work  has  been  a 
question  of  considerable  moment  to  every  factory  man- 


EMPLOYMENT   AND   RATE    FIXING 


99 


ager;  for  many  times  the  worker  will  not  only  spoil 
a  great  amount  of  valuable  material,  but  all  labor  and 
fixed  charges  which  have  been  accumulated  on  the  part 
prior  to  the  time  of  his  beginning  work.  For  fixed 
charges  caused  by  his  operation  the  worker  is  respon- 


FORMA-IZM 

WORKMAN'S  ABSENCE  REPORT 


NAME 


H.N.K. 


LEFT 
WORK 


MO. 


DAY 


HOUR 


P.M. 


WILL 

RETURN 


MO. 


DAY 


HOUR 


A.M. 
P.M. 


CLOCK  NO. 
532 


DID 

RETURN 


MO. 


OAY 


HOUR 


Y  A.M, 


EXPLANATION-Absences  or  Lates  are  allowed: 


When  causing  NO  OVERTIME  WORK. 


When  NO  LOT  URGENT  TAGS  ahead  of  Man. 


When  Workman  arranges  with  Foreman  for  Workman's  Job 
to  go  on  without  delaying  Production. 


REMARKS:       Specify  condition  of  work  ahead  of  Man:— 


CHECK 


NO 


NO 


YES 


Man  is  ahead  of  schedule  on  his  work 


SIGNED:- 


E.J. 


DEPT.  FOREMAN 


NOTED 


MO.       OAY 


YR. 


16 


HOUR 


A.M. 
JSSSL 


eiQNEO 


6.H.C 


D.5    M- CLERK 


ALLOWED 


MO.        DAY       YR. 


16 


HOUR 


A.M. 


aiQHEO 


H. 


EMPLOY.  SUP'V'R. 


CHECKED  WITH 
WORKMAN'S  RECORD 


MO.       OAY 


YR. 


16 


HOUR 


P.M. 


SIGNED 


C .  E .  ff . 


EMP.  DEPT.  CLERK 


FIG.  13 
FORM  II.   ABSENCE  REPORT  FOR  WORKMAN  NO.  532 

sible  and  for  the  monies  paid  to  him  there  is  little 
doubt  that  he  can  be  held  accountable^  but  for  the 
full  material  value  or  previous  effort  applied  for  which 
he  is  not  accountable  in  any  way,  there  is  no  justice 
in  charging  to  him. 


100 


THE  TAYLOR   SYSTEM 


In  our  plan  of  rating,  the  worker  recompenses,  by  a 
proportionate  reduction  in  his  base  rate  during  the 
succeeding  rate  period,  for  such  spoilage  charges  only 
as  may  be  caused  by  his  rate  of  pay  and  the  fixed 
charge  rate  losses  on  his  operation  for  which  he  is  ac- 
countable—only, then,  for  that  part  which  has  been  de- 
cided without  question  to  have  been  his  responsibility. 
No  spoilage  is  charged  until  complete  evidence  has 
been  obtained  proving  that  the  mechanical  equipment, 
tools,  or  other  factors  over  which  he  had  no  control 
were  not  a  part  of  the  causes.     It  is  very  unusual 
for  such  spoilage  or  loss  to  penalize  a  worker  more 
than  two  per  cent,  per  hour  for  his  new  rating  period 
of  three  months ;  while  at  the  same  time  he  may  be 
drawing  30  to  40  per  cent,  extra  earnings  for  speed. 
The  larger  number  of  workmen  cause  losses  so  small 
that  no  penalty  is  attached.    Altogether  it  has  not  so 
far  seemed  to  have  worked  a  particular  hardship,  but 
it  has  not  as  yet  been  tried  out  sufficiently  to  say  that 
there  is  not  some  problem  still  left.     If  the  spoiled 
work  can  in  any  way  be  redeemed,  then  the  direct 
labor  charges  and  fixed  charges  for  such  redemption 
only  are  charged  to  his  rating.    It  should  be  clearly 
understood  that  fixed  charges  do  not  mean  the  con- 
ventional "overhead"  rate,  but  such  fixed  charges  only 
as  the  workman  can  influence.     (See  Form  III.) 

Percentage  op  ttme  under  task  (PO-— Under  any 
task  plan  there  are  periods  of  work  in  which  the  worker 
is  suspended  from  task,  or  work  on  parts  on  which 
no  rate  has  been  set.  It  is  universal  in  any  such 
methods  of  payment  that  such  time  shall  be  paid  at 
flat  base  rate  only.  To  determine  the  merits  of  this 
and  to  obtain  a  proportion  of  relative  time  of  opera- 
tion of  workmen  when  under  task  or  straight  time,  a 


employment  and  rate  fixing 


101 


study  was  made  of  the  time  which  workers  used  on 
parts  on  which  task  by  time  study  was  later  set.  The 
average  result  indicated  that  for  a  man  accustomed  to 
task  work,  if  he  saved  a  given  amount  on  a  part  after 


/ 

^Spoiled  &  f  Q  )  Material  > 
Defective      \^Z^      Report 

N 

DRAW.  NO. 

21158 

E30USIC 
Crank  Sliaft 

LOT  NO. 

58 

NO.  OF 
DEFECT 

0 

NO.  OF              - 
SPOILED            1 

NO.  OF 
RE-M'CH. 

0 

IMPORTANT -THIS   IDENTIFICATION  TAG  MUST 
STAY  WITH  SPOILED  AND    DAMAGED   PIECES. 

INSPECTOR'S    RECORD 

fNSTROCTIONS  -  W.  M.  INSPECTORS   WllL  SUP- 
PLY ALL  DATA  REQUESTED.  W.M,  RECEIVING  CLERK 
WILL  CHECK  FOR  COMPLETENESS  OF  RECORD. 

DRAW. 
NO. 

21158 

COT 
NO. 

58 

•»©,     DAY 

TrI 

7    26  16] 

OPER. 
NO. 

14 

NO. 
DEF. 

NO. 
8PL0 

NO. RE 
MACH 

dPECinr  EXACT  NATURE  OF 
FAULT  IN  PIECE 

1 

Ground  too  small 

1 

TOTAI 

1 

SlQNEO 
W.M.H(BP. 

J.F. 

DATE 

M«. 

DAY 

CHECKED 

7 

30 

W.MJI^LK. 

W.S. 

J 

/       ®         \s 

IN8TR0CTION8  -  REPAIR  DIVISION  WILL  EXAM- 
INE PIECES  FOR  SALVAGE-  SPECIFY  REPAIRS 
NEEDED  -  OBTAIN  CHIEF  INSPECTORS  APPROVAL 
-DETACH  STUB  BELOW-  FORWARD  STUB  TO 
ROUTE    CLERK   TO   MAKE    ROUTE  SHEET. 

WHEN  INVESTIGATION  OF  RESPONSIBIUTY  FOR 
SPOILAGE  IS  COMPLETED-REPAIR  DIVISION  WILL 
RETURN  STUB  TO  RATING  DIVISION  FOB  POST- 
ING ON  RECORDS. 

OPER 
NO 

CLOCK 
NO 

OPERATORS  REPORT 

TOOL  COHOITIOM 

OF  CAUSE 

REPAIRS  TO  MAKE 

14 

532 

urowed 

Tools    etc 

wneei    too 

O.K- 

Wo.  UeoairR 

MO. 

DAY 

Wl. 

APPROVE  D-BY 
CHIEF  INSP 

REPAIRS 
ROOTED  SV 

8 

2 

16 

REPAIR  OIV. 
INVEST.  Br 

J.G. 

8 

3 

16 

ENTBREO 
ON  RATmO 

REooND  ar 

D.O. 

FIG.  14 

FORM  III.    FRONT  AND  REVERSE  OF  INSPESTOR'S  REPORT  OF 

SPOILED  AND  DEFECTIVE   MATERIAL  FOR 

WORKMAN  NO.   532 

task  was  set,  he  would  have  approximately  one-half  of 
this  time  before  the  task  was  set.  While  this  was  not 
in  any  sense  regular,  nevertheless  it  was  so  common 
as  to  furnish  a  proportion  for  the  setting  of  extra 
recompense  in  addition  to  base  rate  when  not  under 


•:\  1 


I  i 


?1 


102 


THE   TAYLOR   SYSTEM 


task.  That  is,  if  a  worker  earns  30  per  cent,  premium 
on  a  base  rate  of  30  cents  per  hour  and  receives  a 
total  earning  of  40  cents,  he  receives  35  cents  per 
hour  when  suspended  from  task.  If  on  a  30  cent  rate 
he  earns  50  per  cent,  premium  with  a  total  of  45  cents 


RETURNED 

FORM 

A-1277  MFQ. 

ISSUED 


Nov.  4,1916        4:00  P.M. 
Nov.  3,1916        3:30  P.M. 


IDLE    TIME 


DRAW. 
NO. 


nn%. 


21158 


MATERIALS 


Not  on  Floor. 


Lot  incomplete. 


Tags  Mis-singr. 


Not  up  to  Machine. 


MACHINE 


Break-Down. 


Repalrmeji  Working  an. 


Belt  Trouble. 


Power  Shut-Offs. 


instructions:  -carefully  check  item 
causing  delay. 

idle  time  will  not  bl  allowed  if  report 
18  incomplete. 


105 


MAN'S 
NO. 


D5      IVI32 


NAME 


H.N.K. 


CHG. 
TO 


F-No    115 


LOT 
NO. 


58 


OPER 
NO. 


14 


INSTRUCTIONS 


Lacking,  or  Missing. 


Defective,  or  Inconnplete. 


No  Blue  Print. 


Delayed  for  Inspection. 


Waiting  at  Cage. 


TOOLS 


Lacking,  or  Missing. 


Defective,  or  Faulty. 


Delayed  for  Grinding. 


Delayed  for  Supplier. 


FOREMAN 


CLERK 


E.J. 


C .H.C* 


FORM  IV. 


FIG.  15 
IDLE  TIME  REPORT  ON  WORKMAN   NO.  532 


per  hour,  when  suspended  from  task  he  receives  371/^ 
cents  per  hour.  That  is,  his  day  work  allowance  is 
one-half  of  his  premium  earnings  when  under  task. 
The  next  rating  compensates  for  this  allowance.  (See 
Form  IV.) 


EMPLOYMENT   AND   RATE    FIXING 


103 


Percentage  of  time  spent  on  non-task  or  straight 
TIME  work  (Pd), — Discussed  in  the  preceding  para- 
graph. 

Cooperation  and  conduct  ((7). — Additionally,  there 


FORM  A-1SS7  MFQ. 

WORKMAN'S    RATING  REPORT 

NAME 

CLOCK  NO. 

OLD  RATE  NEW  RATe| 

H.K. 

532 

35  H 

.43     1 

NEW  RATE 
BEGINS 

MO. 

DAY 

YR. 

CONTINUES 
UNTIL 

MO. 

DAY 

YR. 

REPORT 
ISSUED 

MO. 

DAY 

YB.  1 

5 

8 

16 

7 

1 

16 

PERIOD 
BEGINS 

1 

3 

16 

PERIOD 
ENDS 

4 

1 

16 

PERIOD 
LENGTH 

650  Hrs. 

FACTOR 

EXPLANATION 

RECORD 

STANDARD 

e-E 

Per  cent  of  task  time  earned 

33.8% 

33.3% 

Pa 

M       II     II   absence  per  hour  worked 

3     % 

0 

Pd 

'»       »»     "   time  spent  on  day  work 

17    % 

10 

Pl 

II        M      »»  time  suspended 

0    % 

0 

s 

Averag^e  cost  of  spoiled  work  per  hour 

S.OO 

0 

M 

No.  of  major  processes  can  do 

6 

2 

y 

Years  of  continuous  service 

10.3 

5 

C 

Conduct  and  co-operation 

100% 

100% 

REMARKS:      This  rating  determined  on 

base  rateCB)of  S.25  for  Crank 

finishers.     The  record  is  good 

cut  down  your  absence  all  possible 

and  hold  your  earnings  high 

The  old  bargaining;  rate  of  5i.355 

for  the  same  performance  is  hereby 

abolished 

Your   record   through    the   current    period  will   increase   or  decrease   your   rate 
for   the    coming    period. 

AUTHORIZED 

APPROVED 

APPROVED 

-^.U^^. 

9r,S,77^. 

P 

PRODUCTION  MANAGER 

0  SUPERINTENDENT 

(/       DEPT.  FOREMAN 

FIG.  16 
FORM  V-a.  RATING  REPORT  OF  WORKMAN  NO.  532 

The  three  reports.  Forms  V-a,  Z>.  c,  show  how  one  man  increased  his  rate  of 
pay  from  35%  cents  per  hour,  first  to  43  cents,  then  to  49V6  cents,  and  finally 
to  53%  cents. 

is  the  general  problem  of  cooperation  and  conduct.  Co- 
operation in  a  special  way  deserves  credit,  since  it  is 
unexpected.  Any  defect  in  conduct,  since  unexpected, 
should  cause  adverse  criticism.     It  is  not  the  intent 


■I ; 


:1 


' 


h 


,  I 


H 


It 


■It .'  i 

,.  vi,    , 


I 


104 


THE   TAYLOR    SYSTEM 


at  this  time  to  discuss  or  reduce  to  factors  either  co- 
operation or  conduct,  although  this  work  is  planned 
and  will  soon  be  regularly  used.  It  rests  chiefly  upon 
an  understanding  with  the  workers  that  certain  well- 


FORM  A-tSSTMFQ. 


9|i5fi6WORKMAN'S    RATING   REPORT 


NAME 


H.K. 


NEW  RATE 
BEGINS 


PERIOD 
BEGINS 


MO. 


DAY 


8 


YR. 


16 


16 


CONTINUES 
UNTIL 


PERIOD 
ENDS 


CLOCK  NO. 


532 


MO. 


10 


DAY 


YR._ 

16" 


16 


FACTOR 


ej_ 
Pa 


Pd 


M 


EXPLANATION 


Per  cent  of  task  time  earned 


"   absence  per  hour  worked 


"   tinfie  spent  on  day  work 


"   time  suspended 


Average  cost  of  spoiled  work  per  hour 


No.  of  major  processes  can  do 


Years  of  continuous  service 


Conduct  and  co-operation 


OLD  RATE 


.43 


REPORT 
ISSUED 


PERIOD 
LENGTH 


NEW  RATE 


.495 


MO. 


DAY 


30 


YR. 


16 


450  H"» 


RECORD 


42.7% 


2.2% 


31    % 


0     % 


liPO. 


5^ 


10.4 


100% 


STANDARD 


33.3% 


10 


0 


100% 


REMARKS: 


Your   record    through    the     current    period  will   increase   or  decrease   your   rate 
for    the    coming    period. 


AUTHORIZED 


^JM. 


PRODUCTION  MANAGER 


APPROVED 


6^.7^. 


SUPERINTENDENT 


APPROVED 


^ 


DEPT.  FORE  MAN 


PIG.  17 
FORM  V-6.     (SEE  FORM  V-a) 

defined  acts  of  cooperation  will  bring  extra  reward,  and 
certain  unsatisfactory  conduct  will  cause  definite  pen- 
alties, ranging  from  reduction  in  wages  to  the  condi- 
tion where  a  man's  action  or  influence  is  incompatible 
to  his  supervisors  and  associates,  with  resulting  dis- 
charge. 


EMPLOYMENT    AND    RATE    FIXING 


105 


Labor  and  fixed  charge  cost  (X). — This  is  the  cost 
as  adopted  and  used  by  the  Accounting  Department. 

Time  taken  to  do  work  (t). — This  is  the  time  ac- 
tually taken  to  do  the  work. 

This  may  all  seem  to  be  a  very  complex  solution  of 


FORM  A-1867  MFQ. 


i2Wi«  WORKMAN'S    RATING   REPORT 


NAME     Crank  Grd. 


Mr.K. 


NEW  RATE 
BEGINS 


PERIOD 
BEGINS 


MO. 


DAY 


IB. 


YR. 


m. 


16 


CONTINUES 
UNTIL 


PERIOD 
ENDS 


CLOCK  NO. 


532 


MO. 


IZ. 


8 


DAY 

TS" 


26 


YR. 

16 


16 


FACTOR 


e-E 


Pa 


Pd 


Pl 


M 


EXPLANATION 


Per  cent  of  task  time  earned 


"  absence  per  hour  worked 


t»  time  spent  on  day  work 


"  time  suspended 


Average  cost  of  spoiled  work  per  hour 


No.  of  major  processes  can  do 


Years  of  continuous  service 


Conduct  and  co-operation 


OLD  RATE 


495 


REPORT 
ISSUED 


PERIOD 
LENGTH 


NEW  RATE 


535 


MO.     DAY     YR. 


9  118116 


630    Hrs. 


RECORD 


60% 


1.4% 


6% 


0% 


S.003 


5h 


10.6 


100% 


STANDARD 


33.3% 


0     % 


10  % 


0     % 


s.oo 


100 


REMARKS: 


Your  excellent  record  of  premium 

earnings  as  well  as  low  absence  has  put 


your  rate  up  this  additional  amount. 


Your   record   through  the   currer\t   period  will   increase    or  decrease   your   rate 
for   the    coming    period.  R.M  .H, 


AUTHORIZED 


^,.0^. 


PRODUCTION  MANAGER 


APPROVED 


#^ 


S.'^h^. 


SUPERINTENDENT 


APPROVED 


^ 


OEPT.FOREMAN 


FIG.  18 
FORM  V-c.    (SEE  FORM  Vhi) 

the  problem,  but  it  seems  to  be  the  least  complicated 
expression  which  will  solve  the  problem  in  any  satis- 
factory way  and  allow  for  the  perpetuation  of  standard 
rules  without  personal  differences  interfering  in  each 
new  rating.     As  a  result  of  the  application  of  this 


\l 


\ 


1     ,• 


■< :  ■' 


m: 


'i 


I 


!  j 


106 


THE    TAYLOR    SYSTEM 


rating  to  workers  two  classes  immediately  developed: 
— one,  in  which  the  worker  still  maintains  or  increases 
his  rate,  exemplified  in  Forms  I,  II,  III,  IV,  V,  VI, 
and  Appendix  I,  page  174 ;  the  other,  a  class  in  which 


FOB. ..no.           WORKMANS     DAILY   STATEMENT 

NAME           H.K.                                                                D    5     M   32 

YOUR  TIME  AND    EARNINGS  WERE  AS  FOLLOWS  ON 

MO. 

DAY 

YEAR 

11 

1 

16 

DATE 

WORKED 

ON 

DRAW.  NO. 
WORKED  ON 

LOT 

NO. 

opeR. 

NO. 

PREM. 
BASE 

PIECES 
FINISHED 

TIME 
TAKEN 

PREM. 
HR8.DUE 

MO. 

DAY 

BEGUN  AND  FINISHED  THIS  DAY 

HR8. 

IOC 

HRS. 

10S 

11 

1 

21158 

56 

14A 

SH 

35 

1 

2 

1 

8 

■ 

BEGUN  OR  CARRIED  OVER  THIS    DAY   BUT  NOT  FINISHED 

11 

1 

21158 

58 

14 

104 

5 

3 

3 

CARRIED  OVER  AND   FINISHED  T 

HIS  DAY 

19 

0 

11 

1 

21158 

56 

14 

104 

1 

6 

4 

5 

TIME  ON  PRODUCTIVE  DAY  WORK 

20 

8 

TIME  ON  NON-PRODUCTIVE  DAY  WORK                       I 

TOT. PREM. 

OVERTIME 

TOTAL  TIME  ACTUALLY  WORKED= 

9 

0 

TOTAL  TIME   WORKED  PLUS  PREM. 

HR8. 

108 

RATE 

DOLLARS 

CT8. 

lUM 
TIM 

HOI 
E  ALI 

JRS     EARNED    PLUS 
-OWANCE. 

OVER- 

29 

8 

.53H 

15 

96 

PIG.  19 
FORM  VI-o.    DAILY  STATEMENT  FOB  WORKMAN  NO.  532 

the  rate  tends  to  decrease,  exemplified  in  Appendix 
I,  page  176.  As  typifying  these,  two  cases  are  illus- 
trated, the  records  of  one  worker  in  each  class.  Such 
records  are  maintained  for  all  of  the  workers,  and 
since  the  re-rating  occurs  but  four  times  per  year,  it 


EMPLOYMENT    AND    RATE    FIXING 


107 


has  not  caused  an  excessive  overhead  burden.  It  is 
self-evident  from  an  inspection  of  these  records  that 
regardless  of  anything  like  a  reasonable  overhead  cost, 
the  profits  to  both  worker  and  management  must  be 


IMPORTANT 

WORKMAN,  ATTENTION-  IF  YOU  FIND  ANY  ERROR  IN  THIS  STATEMENT,  WRITE 
ALL  NECESSARY  INFORMATION  IN  SPACES    BELOW  AND  RETURN    STATEMENT 
SAME  DAY  RECEIVED  TO  RATING  DIVISION. 

PAYMASTER: -MY  CLAIM  FOR  PREMIUM  IS: 

DATE 
WORKED  ON 

DRAW.  NO. 
WORKED  ON 

LOT 
NO. 

OPER. 
NO. 

PREM. 
TIME 

PIECES 
FINISHED 

TIME 
TAKEN 

PREM. 

HOURS 

DUE 

AMOUNT 
DUE 

MO. 

oAr 

DOLS. 

CTSt 

REMARKS  AND  EXPLANATION 

TOTAL  DUE 

WORKMAN'S 
STATEMENT 

D      M   CLERK'S 
STATEMENT 

PAYMASTER'S 
STATEMENT 

FORM  Vl-b. 


FIG.  20 
REVERSE  OF  WORKMAN'S  DAILY   STATEMENT 


very  great.  The  statements  of  two  of  our  workmen 
are  shown  as  typical  of  the  statements  which  they 
have  been  very  free  to  make  to  those  closely  associated 
with  this  work.  (See  Appendix  I,  page  180.)  It  is  our 
intention  to  continue  our  studies  along  the  lines  of  the 
relative  cost  of  training  workers  for  standard  proc- 


I 


108 


THE   TAYLOR   SYSTEM 


esses,  and  as  early  as  possible  to  work  from  one  funda- 
mental base  rate. 

This  rating  system  was  adopted  and  introduced  in 
a  year  when  workmen  had  practically  no  fear  of  ob- 
taining employment  wherever  they  desired.  None  of 
the  negative  or  positive  factors  was  withheld  from 
them  or  modified  during  the  many  discussions  with 
them,  and  the  management  has  stood  ready  at  any 
time  to  assist  any  worker  who  did  not  care  to  work 
under  its  provisions  to  positions  in  other  industries  in 
this  territory.  We  feel  that  the  plan  has  been  rigor- 
ously tested.  Not  only  have  we  had  no  resignations 
on  this  account,  but  we  have  also  attracted  a  consider- 
able number  of  excellent  men  to  our  force.  v 


Chapter  VII 
ORGANIZATION   CLASSIFICATION 

THE  cooperation  between  management  and  work- 
men and  the  division  of  work  between  these  two 
branches  of  the  industry — the  third  and  fourth  of  the 
principles  of  Scientific  Management  as  expounded  by 
Doctor  Taylor — can  be  plainly  traced  throughout  the 
development  of  the  science  and  the  selection  and  train- 
ing of  the  workmen,  as  outlined  in  the  preceding  chap- 
ters. In  fact,  the  four  fundamental  principles  of  Sci- 
entific Management  are  so  intimately  and  mutually  co- 
related  that  it  is  quite  impossible  to  draw  sharp  lines 
of  demarkation  in  their  practical  application,  or,  for 
that  matter,  between  the  responsibilities  of  the  man- 
agement and  the  duties  of  the  workmen.  This  in  itself, 
though  it  may  not  seem  to  establish  the  result,  does 
tend  toward  creating  the  necessary  cooperative  action 
and  division  of  work,  for  a  practical  working  organiza- 
tion built  on  Doctor  Taylor's  principles  must  be  based 
on  clearly  defined  duties  for  each  and  every  individual. 
The  organization  table  of  our  manufacturing  depart- 
ment. Figure  21,  forcibly  brings  out  the  cooperation 
and,  at  the  same  time,  the  individualism  required  for 
the  successful  application  of  Scientific  Management 
to  a  modem  plant  engaged  in  the  manufacture  of  a 
complex  product.  There  is  no  confusion ;  each  depart- 
ment, each  individual  has  its  or  his  own  independent 

109 


r  :! 


'       ^f 


«; 


110 


THE   TAYLOR    SYSTEM 


duties  clearly  defined.     Management  and  production 
are  distinct,  but  still  go  hand  in  hand. 

The  Works  Manager,  the  representative  of  the  Com- 
pany, is  at  the  head  of  three  divisions:  the  Purchas- 
ing, Engineering  and  Producing  Departments,  each  one 
distinct  and  related  in  no  way  to  any  one  of  the  others, 
except  in  so  far  as  the  product  of  one  may  affect  the 
producing  division,  or  in  the  performance  of  some 
special  work  which  stimulates  or  assists  production. 
For  instance,  the  only  direct  connection  between  the 
Purchasing  Department  and  the  shop  is  that  the  mate- 
rials required  by  the  shop  are  purchased  through  the 
Purchasing  Department  of  the  organization,  though 
there  is  an  indirect  connection  in  the  fact  that  the 
necessary  patterns  are  routed  through  the  shop  by  the 
Purchasing  Department — such  special  duty  aiding  the 
Purchasing  Department  in  delivering  to  stock  certain 
materials  required  for  production. 

The  Engineering  Division,  consisting  of  the  three 
independent  sub-departments  of  research,  design  and 
inspection,  is  quite  separate  and  has  no  voice  in  the 
operation  of  the  shops.  Its  duties  are  clearly  defined : 
the  research  section  conducts  such  technical  experi- 
ments as  may  be  necessary  to  further  the  interests  of 
the  organization  and  performs  all  mechanical,  chemical 
and  physical  tests ;  the  designing  department  prepares 
the  mechanical  specifications,  makes  the  drawings  and 
maintains  the  alterations  which  are  necessary  for  the 
producing  division  of  the  organization;  while  the  in- 
spection section  passes  on  all  purchased  material  be- 
fore it  is  credited  to  stores,  inspects  finished  parts, 
assemblies  and,  finally,  the  finished  product,  the  auto- 
mobile— i.e.,  worked  material  inspection. 

The  Producing  Division,  the  factory,  is  divided  into 


Ml 


ORGANIZATION    CLASSIFICATION 


111 


\ 


two  main  departments,  the  planning  and  executive  sec- 
tions, both  under  the  direction  of  the  Production  Man- 
ager.    It  is  in  this  division  of  the  organization  that 
the  cooperation  between  management  and  workmen  and 
the  division  of  the  work  is  most  clearly  apparent. 
Each  one  of  these  two  main  departments  is  subdivided 
into  four  sections,  each  section  with  specific  duties  and 
responsibilities  forming  connecting  links  between  the 
workers  and  the  management.     The  sections  of  the 
Planning  Department  are  those  of  routing  and  equip- 
ment for  production,  schedules,  building  and  equip-    / 
ment,  and  employment.     Those  of  the  Executive  De- 
partment: despatch,  producing,  inspection,  and  stor- 
ing and  transportation  of  materials  through  the  shops. 
The  duties  of  the  routing  and  equipment  for  pro- 
duction section  in  the  Planning  Department  cover  the 
design   and   construction   of  tools,   their   repair   and 
storage,  specification  of  perishable  tools  and  supplies 
to  be  carried,  preparation  of  tool  lists,  selection  and 
standardization  of  machines,  maintenance  of  belts  and 
attention  to  all  power  transmission  problems,  speci- 
fications of  the  size  and  form  of  materials  to  be  carried 
and  attention  to  the  routing  of  all  materials,  pattern 
orders,  parts  and  assemblies  through  the  shop.     In 
addition  to  these  more  or  less  routine  duties,  this  sec- 
tion also  decides  upon  the  parts  which  constitute  as-  O^ 
semblies,  prepares  the  assembly  charts  and  conducts     / 
the  time  studies,  etc.,  decides  upon  the  rates  to  be  set 
and  prepares  the  instruction  cards.    Further,  it  plans 
the  paths  and  stations  for  production  of  parts  and 
assemblies.    These  numerous  duties  call  for  the  serv- 
ices of  a  master  mechanic,  draftsmen,  time  study  ob- 
servers, an  analysis  clerk  and  a  corps  of  stenographers. 

The  schedule  section  is  in  charge  of  the  Production 
9 


112 


THE   TAYLOR    SYSTEM 


I    i- 


Manager,  Assistant  Production  Manager,  manufactur- 
ing order  clerks  and  a  progress  clerk.  Their  duties 
include  the  preparation  of  the  schedule  tape  for  the 
Control  Boards,  the  progress  charts  and  setting  the 
schedule  for  each  element  entering  into  the  construc- 
tion of  a  car.  They  record  the  attainment  of  the  pro- 
ducing division  with  respect  to  schedule  and  despatch 
and  display  a  perpetual  inventory  of  work  in  proc- 
ess and  work  in  finish  stores.  The  lot  sizes  are  deter- 
mined by  them  and  the  Control  Boards  set-up;  they 
write  and  date  all  manufacturing  orders,  job  cards, 
issues  for  materials  from  stores,  move  tickets  and  tags. 
They  open  and  date  assembly  charts,  date  pattern  and 
tool  orders  and  set  the  maximum  and  minimum  requi- 
sitions for  unclassified  stores. 

The  building  and  equipment  section  has  duties  which 
are  somewhat  foreign  to  the  actual  production  of  auto- 
mobiles, but  which  are  nevertheless  necessary  in  main- 
taining production :  They  include  the  planning  and  con- 
struction of  buildings,  improvements  to  the  grounds, 
furnishing  light,  heat  and  power  to  the  buildings,  and 
providing  for  fire  protection,  ventilation  and  sanita- 
tion. The  alteration  and  repair  of  buildings  and  prop- 
erty, the  maintenance  of  cleanliness  throughout  the 
plant,  etc.,  also  come  under  the  jurisdiction  of  this  sec- 
tion. The  personnel  of  this  section,  in  addition  to  the 
Works  Manager  and  Production  Manager,  consists  of 
the  Superintendent,  Chief  Millwright,  Power  Plant  En- 
gineer, foremen  and  the  necessary  millwrights,  elec- 
tricians, janitors,  watchmen  and  utility  men. 

The  employment  section  is  in  charge  of  the  Employ- 
ment Manager  who,  in  consultation  with  the  Production 
Manager,  Superintendent,  Assistant  Superintendent 
and  the  various   foremen,  handles   all  matters  per- 


ORGANIZATION    CLASSIFICATION 


113 


taining  to  the  employment  and  discharge  of  workmen, 
passes  on  rates,  maintains  the  workmen's  time  and 
earning  records,  classifies  the  worker's  qualifications 
and  is  responsible  for  the  tool  checks  when  workmen 
leave  the  employ  of  the  company. 

Under  the  Executive  Department  of  the  Producing 
Division,  despatch  is  centered  in  the  despatch  room 
with  its  system  of  pneumatic  tubes  for  the  transmission 
of  all  shop  communications  and  is  under  the  immediate 
control  of  the  Assistant  Production  Manager.  The 
active  force  consists  of  the  chief  despatch  clerk,  a 
tickler  clerk,  route,  file  and  machine  rack  clerks  and  a 
mail  boy.  Their  duties  are  mostly  clerical,  for  they 
consist  in  the  proper  distribution  of  communications  to 
and  from  the  shops;  dating,  recording  and  reporting 
on  the  numerous  orders,  tickets  and  memoranda  inter- 
changed between  the  Planning  Department,  the  man- 
agement and  the  workers  in  the  shops,  through  the 
medium  of  the  Control  Boards.  The  carrying  of  all 
mail  is  also  entrusted  to  the  care  of  this  section. 

The  produce  section  of  the  Executive  Department 
sees  that  all  orders  received  from  the  despatching  sec- 
tion are  carried  out  by  the  respective  sections  to  which 
they  are  addressed  and  acts  as  general  overseer  in  all 
matters  of  production  activity.  Both  the  Production 
Manager  and  the  Assistant  Production  Manager  have 
distinct  duties  to  perform  in  this  section,  as  have  also 
the  Superintendent  and  the  Assistant  Superintendent 
of  the  plant.  The  foremen  of  each  department,  the 
Stores'  Chief  with  his  clerks,  the  Transportation  Clerk, 
movemen,  elevator  operators,  shop  inspectors  and  the 
workmen  cooperate  in  this  section  to  carry  forward  the 
productive  activity  of  the  organization. 

The  duties  of  the  inspection  section,  under  the  Ex- 


t 


^ 


M 


114 


THE    TAYLOR    SYSTEM 


ecutive  Department,  are  limited  to  the  inspection  of 
parts  in  process,  which  is  quite  separate  from  the  in- 
spection of  the  Engineering  Division  on  worked  mate- 
rial, and  to  direct  dealings  with  the  workmen  in  re- 
spect to  claims  on  bonus  jobs,  etc.  The  first  part  fin- 
ished of  each  lot  on  each  operation  is  inspected,  checked 
with  its  drawing  and  passed  upon  for  quality  of  work- 
manship, etc.  The  inspector  also  passes  on  as  many 
subsequently  finished  pieces  of  the  same  part,  in  the 
same  lot  and  on  the  same  operation  as  it  is  possible 
for  him  to  inspect  and  reports  his  findings  to  the 
foreman  of  the  department.  Any  criticisms  from  the 
Engineering  Division  inspectors  on  worked  materials 
are  investigated  and  workers'  claims  of  good  parts  on 
bonus  jobs  checked  by  the  inspectors  of  this  section. 

The  section  of  Store  and  Transport  maintains  the 
ledgers  of  all  stores  on  hand  and  apportions  manufac- 
turing orders  and  assembly  charts  to  these  ledgers. 
The  requisition  of  all  materials  called  for  by  appor- 
tionments is  cared  for,  and  all  materials  received, 
certified  as  to  quantity  and  stored.  The  transporta- 
tion of  all  materials  on  orders  from  the  despatch  sec- 
tion is  also  a  duty  of  this  section,  as  is  the  maintenance 
of  transporting  equipment,  scales,  bins,  etc.  The  As- 
sistant Production  Manager  heads  the  section  and  deals 
with  the  Chief  of  Stores,  the  stockmen,  movemen  and 
the  elevator  men  in  the  various  buildings. 

This  brief  explanation  of  the  duties  of  the  various 
divisions  and  sections  of  the  manufacturing  depart- 
ment of  the  organization,  together  with  a  study  of  the 
organization  classification  table  (Figure  21),  should 
make  clear  the  cooperative  feature  and  the  equitable 
division  of  work  under  the  Taylor  System  of  Manage- 
ment as  applied  in  the  Franklin  shops. 


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i    PLANNINS     I 


PHODUCINO  DIVISION  . 
PnODUCTIOH  MMAOm 


,  mANUFACTUKIHG  cnOU^.  . 

nonna  mNAGEH    f 


1 


MEN 


Master  Mechanic 
Draftamen, 
Tim*  Study  Observer i 
Ane.li/sis  Cl*rk, 
Stenographers . 


DUTIES 


\ 


Toot  Design  anet  Ccmttrtuhon, 
Specify  PerisJiaii*  To^  A  Su^tiies, 
Prepare  Tool  Littt,     i 
Tiepair  Tools  *  SterJi 
Seieet  Machines  A  ASter, 

Maintain  Belts  t  l.oca\  Pourer  Txans- 

missiojx, 

Maintain  Machine  Tin^e  Burdens, 

Specific  Form  A  Si^  t^  Materials, 

^oute  Pattern  Orders' t^  pot  lour  up 
Test  Coating 3  ♦  Lead  Proofs, 

Prepare  Tioute  Sheets  for  Parts  A 

Assenxilies, 

Decide  on  Parts  Grou^  'ly  for  Assem- 

hliea. 

Prepare  AssemUy  Ch  >rts. 
Prepare  Time  Study    Analysis, 
Prepare  Instruction  "ards,. 
Decide  Pates  to  Set, 


Plan  Path  *  Station 


of  Parts  A  AssemUtt  s 


for  Production 


\SCHBOULE^ 


-\      rriLN     I 

Productiun  Manager, 
Assistant  Production  Manager, 
Manufaeturiny  Order  Clerks, 
Progress  ClerM. 

\  Dur/£S  I 

Prepare  Progress  Chart*, 

Prepare  Tape  from.  Geiierai  Schedule, 
for  Control  Board  wkicA  shows  each 
Element  of  ffoute  Division  Work 
except  Pate  Setting, 
Set  SeheeduU  for  Each  Element, 
Despatch  antf  Delayed  Parts, 

Pecord  Attrininent  of  the  Producina 
Division  uith  fftspeet  to  Schetiuim  • 
DespaicA., 

Disptau  a  Perpetual  lnoentoru  of 
Work  in  Process  and  Parts  in 
Pinish-Stores, 

? determine  Lot  Sije 3  and  Erect 
ontrol  Boards, 

Ylrite  and  Date  Mcnufactunng  Ordei^ 

Write  and  Date  Jo6  Cards.  Store 
Issues,  Mooe  Tickets  and  Tags, 

Open  &  Date  AssemUy  Charts, 

Date  Pattern  Orders, 

Date    Tool  Orders, 

Set  Meumutns  ii  /Hinimums, 

Pe^uisition.  Unclassified  Storae. 


-4     Met/' 


BUILDIN6  A 
EQUIPIttSffT 


Works  Iflanager, 

Production  Manager, 

Sup  e  rintcnde  n  t. 

Chief  Miiturrijht, 

nfillufrights. 

Electricians, 

Janitors, 

Watchmen., 

UtiUty  Men. 

Pouter  T^cnz  Engineer^ 

Poremerz.. 


H  Duries    \ 

Plan  ^  Obtain  Architect's  Specifi- 
cations and  i^uild  Buildings  and 
Grounds, 

Produce  Light, Heat k  Power  for 
Buildings  and  Provide  Eire  /Ve- 
tection.,  Ventiiation  Si  Sanitation, 

Maintain  Eire  Department^  Equip- 
ment and  Hospital, 

Alter  A  Pepair  Buddings  A  Greunds 
and  Maintain.  Order  Ir  CleojUi- 
ness. 

Design,  and  Protride  all  Building 
Eeiupment,  Maintain,  and  Pepair, 
Police  Buildings  ^  Grounds. 

■* 


i  ^f/y  J 

Emploz/m  en  t  hianager, 
Prodiiction  MeKogtr, 
Supari'itendtnt . 

A  tsistantSitperinieiuient, 
ForamaJi: 


Piiceioe,  Intentieur  and  Peeord  aU 
AppUcants  for  Hourly  LaSor, 

Fill  Vacancies,  Endorse  all  Appli- 
cants for  Discharge, 

Pass  on.  Pates, 

Maintain  iNorkmen's  Time  and 
Earning  Pecord, 

Classify  Workman's  Quatifieatiens, 

Tfeeeioe  and  Account  for  Tool 
Checks  urhen  Workmen  Leaae  Em- 
pioj. 

-* 


\D£SPATCH\ 


1  EXECuri\/W~^ 

T    I 


— i     MEN       1 

Assistant  Production /ftanager , 

Chief  Despatch  Clerk, 

Tickler  Clerk, 

Jioute,PUe  and  titacAine  Jfacd 

aerks, 

Mail  Boy- 


\DUTIES 


\PHODUC£\ 


Open  Hcute  Sheets  and  Post  at 
Tine  of  £ach  Eaent, 

Deliver  Moo  e  Tickets,  St^re  Issues 
and  Tags  to  Store  Section., 

Peeeiue  Material  from.  Stores, 
Chech  A  Data  Stores  trswe  emd 
Moee  Tickets, 

Deliver  Move  Tic/rets  to  Trans  - 
portation  Section., 
FUe  Job  Cards  in  Triplicate  in- 
Machine  Packs  in  Order  of  Sche- 
dule Data, 

DelioerJob  Card  Coupons  to  Foremen, 

Date.  Stamp  t,  Delieer  Jo6  Cards 
^Workmen  in.  Order  of  Schedule 

Peeeiire  Job  Cards  from  Workmert 

and  Date  Stamp, 

Deliaer  Inspection.  Coupons  to  fn- 

Specters, 

Superirise  Attendance  Job  Card 
Packs, 

Jteceiae  and  Account  for  Lates 
and  Absences, 

Report  Idle  Machines  or  Under 
Pepair  to  Pouting  Section, 

Carry  all  Itlail.. 


MEN        1       I 

Production  Mdnager, 

Assistant  Prodfiction  Manager, 

Superin  tendenf, 

Assista/itSuperintf-ndeTit, 

Foreman 

Stores  Chief  a:ui  Clerks, 

Transportation  Clerk  gtMeoemen, 

Elepator  Men., 

Inspectors, 

Workmen. 


DUTIES  1 


Carry  Out  all  Orders  Pecscoed 
from.  Despatching  Section  urith 
Means  Proiridsd  6g  Other  Sec- 
tions. 


INSPECT 
'         T ' 


— I    ME."^       I 

Production  Manager, 
Inspectors. 

-H  DUTI£S\ 

Inspect  the  First  Part  of  Each 
Lot  on.  Each  Operation, 

Check  Each.  Th.TTan.Each  Operation 
as  Frequently  as  Possible, 

Peceio-e  and.  Inirestigate  all  Criti- 
cisms from  Engineerinff  Inspect- 
ors, 

Pepart  Findings  to  Foremojx, 

Check  Workmen's  Claim,  of  Good 
Parts  on  Bonus  Jobs, 


IjrOffgA  TlfANSfVin\ 


EMGIMeEKlMG  DIVISION 
EMGIMEEn 


MEN 


Assistant  Production.  Manager, 

Chief  of  Stores, 

Stock  Men., 

Mouemen, 

ELeoator  Men. . 


H   experiment    '\ 


DUTIES 


pTf&CTW/yl 


{Meciqjzicat  Test^ 


-\  Chemicai  Test\ 


Draft       I 
H     Check         1 


Hfltysical  Test  \  -K     Trace        I 


Maintain  Ledgers  of  All  Stores  on. 
Hand. 

Apportion  Manufacturing  Orders 
and  Assembly  Charts  to  Ledgers, 

Peeiiisition  of  All  Materials  called 
for  by  Apportion  ments, 

fteceiire  Certify  to  Quantity  and 
Store  AlUMaterials. 

Transport  AU  MateriaLs  on  Orders 
from  Despatching  Section  and  Main- 
tain Scales,  Bins,  Trujcks  andSotts 
in  First  Class  Pepair. 


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REDUCTION 


RATIO 


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Fid.  21.    ORrjANIZATfON  CT.ARSIFICATION  TAPJ.R 


JmAMi 


[ 


1 


PRODUCING  DlVI3tON_^ 
PRODUCTION  MANAGER 


PLANNING 

mz 


yim 


-C 


790(/TE  6t£QVtPM£NT 

FOIf  PRODUCTION 

y 


MEN 


J 


Maste  r  Me  ch  a  nic, 

Dra/tsmen^ 

Time  Study  Observer^ 

Ane.lj/si5  CUrk, 

Stenographers . 


DUTiaS 


] 


i 


Pourer  Trans- 


Toot  Design  and  Con,  traction^ 

Specify  Ptrishable  Tool  -  8^  Supplies , 
Prepare  Tool  Lists,    \ 
Tiepcur  Tools  A  Stor4 
Select  Machines  ie  Aifer, 

Maintain  Belts  tHocA 

missiojt, 

Maintain  Machine  Tin^  Burdens 

Specify  Form  St  Si^e  4  ^Materials, 

Tfoute  Pattern  Orders  i\Follour  up 
Test  Castings  $(  Lead^f*roofs, 

Prepare  Route  Sheets 
Assemblies, 

Decide  on  Parts  Grou^ 
bliest 

Prepare  AssemUy  Ch  irts. 

Prepare  Time  Study 

Prepare  Instruction: 

Decide  T^atestc  Set, 

Plan  Path  &  Stationi]  for  Production 
of  Parts  Ek  AssernUtoa. 


\SCHEDULES\ 


for  Parts  4 
'7tp  forAssem- 


Analysis^ 
Zards, 


■1      MEN      \ 

Prodaction  Manager, 
Assistant  Production  Manager, 
Manufacturing  Order  Clerks, 
Progress  ClerM, 

T^pars  Tigress  Charts, 

Prepare  Tape  from  General  ScheduU 
for  Control  Board  (irhlchskoiffs  each 
Element  of  Tfoute  Dltrision,  Work 
except  J^ateSettiny, 

Set  Schedule  for  Each  Elernent, 

Despatch  ant/  Delaged  Parts, 

flecord  Attcinment  of  the  Producing 
Ditrision  loitk  Tfespect  to  Schedule  * 
Despatch,, 

Displau  a  Perpetual  Inaerttory  of 
Viork  ik  Process  and  Parts  in 
Finlsh-'Store  s, 

DeterTnina  Lot  Sijes  and  Erect 
Control  Boards, 

Write  and  Date  Maniifaeturing  Orders 

Write  and  Date  Jo6  Cetrds  Store- 
Issues,  Move  Tickets  and  Tags, 

Open  &  Date  Assentbiy  Charts, 

Date  Pattern  Orders, 

Date    Tool  Orders, 

Set  Maximums  &  Minimums, 

Re^uisitioTv  Unclassified  Stores, 


BUI  LOINS  A 


employX 

^ 


I 


■H  'men  n 

Works  /tfanczgcr, 

Prodaction  Manager, 

Sup  erintcnds  ?i  t. 

Chief  Miilujright, 

MilLisrights, 

Electricians, 

Janitors, 

Watchmen, 

UtiUtyMen. 

Poorer  Plcnt  En^inacr^ 

ForemcTV. 


H    DUTIES     I 

Plan  '  Obtain  Architect's  Specifi- 
cations and  3uild  Baildihys  a-neC 
Grounds, 

Produce  Light, Heat  k  Poufer  far 
Bail  dings  and  Provide  Fire  Tyo" 
tecticn.  Ventilation  S^  Sanitation, 

Maintain  Fire  Department,  Equip- 
ment and  Hospital, 

Alter  4  'Repair  Buildings  *  Grounds 
and  Maintain  Order  8t  ClearUi— 
ness, 

Besi^Ti  and  Proiride  all  Building 
Eouipment,  maintain  and  /Repair, 
Twice  BuUdinijs  8^  Grounds. 


rr . 

-i  MEN  \ 

Emplof/m  ent  Itfanager^ 
FrCdiSction  Manayer, 

Supsrintendent , 

AssistantSuperinteyident, 
Foreniojv, 


T^iiceice,  tntaraieur  and  J^ecord  all 
AppUeants  for  Hourly  La6  or. 

Fill  Vacancies,  indorse  aU  Appli- 
cants for  Discharge, 

Pass  on  Tfates, 

Maintain  IWorkmen's  Time  and 
Earning  Tfecord, 

ClcLSsify  Workm&ns  Qualifications^ 

Tfeceiae  and  Account  for  Tool 
Checks  urhen  Workmen  Leatre  Em- 
ploy. 


\ 


DESPATCH 


i 


I 


/y/£r/       I 

Assistant  Production  Mamger, 

Chief  Despatch  Clerk, 

Tickler  Clerk, 

TtouZe,  File  and  filacAin  e  Wack 

Clerks, 

Mail  Boy- 


M£N 


[dut/es_J 

Open  Tioute  Sheets  and  Post  at 
Tifne  of  £ach  Event, 

Delitrcr  Moac  Tickets,  Store  fssmes 
and  Tags  tc  Store  Sectcon,^ 

Ifeceiue  Material  from  Stores, 
Check  tk  Date  Stores  hsue  ct^zd 
Moee  Tickets, 

Deliver Itfoa-e  Tickets  tc  Trans- 
portation  Section^ 
File  Job  Cards  in  Triplicate  In, 
Machine  Tracks  in  Order  ofSch^ 
dale  Date, 

DelioerJob  Card  Coupons  to  Foremen,, 

Date.  Stamp  ^  Delicer  Job  Cards 
to  Workmert  in  Order  of  SckedtUe 

fieeeive  Job  Cards  from.  Workmen, 
and  Date  Stamp, 

Deliaer  Inspection.  Coupons  to  In- 
spectors, 

Saperirise  Attendance  Job  Card 
Kachs, 

T^eceitre  and  Account  for  Lates 
and  Absences, 

Report  Idle  Machines  -or  Under 
f^epair  to  Tfouting  Section, 

Carryall  MaiL. 


Ctf 


■S3'. 


t$emn.s  P 
tn»ms. 


MANUFACrumNG  CTfOU 
WOnnS  trtANAGEH 


XJCIN6  DlVl>5!ON_^ 
AUCTION  MANAOm 


1 


\ 


XET^ECuriViT^ 


\jp  striate  nde  nt , 
:}i.r.tantSuperittte)ident^ 
Xor&niari'. 


iiceioe,  /ntaraiaw  anU  y^eeorct  all 
''CfUeants  for  Hourly  Labor, 

ill  Vacancies,  Endorse  all  Appli- 
ijtts  for  Discharge, 

\c.ss  on.  Tiates, 

ViZiTztaln  \NorMm.e.7i's  Time  and. 
ytrruTi^  ffeccrd, 

Utzssif^  Y/crkmans  QuaUficatlons^ 

^eceioe  and  Account  'for  Tool 
\  hecks  iifken  Work  men  Leaae  £m.- 


\L£SPATCH 


I 


I 


\FROmJCE\ 


MEN        i 

Assistant  Production  Manager, 

Chief  Despatch.  Clerk, 

Tickler  Clerk, 

Haute,  File  and  Machine  J^acfi 

ClerkSt 

Matt  Bat/- 


— V^i^Ti£S  \ 

Op*n  Tfcute  Sheets  and.  Post  at 
Time  of  Each  £trent, 

Deliver  Moae  Tickets,  Stqre  Issues 
and  Togs  to  Store  Section,, 

Jfeceiue  Material  from.  Stores, 
Check  A  Date  Stores  /sstce  and 
Mo<ye  Tic/rets, 

D^llaerMoirc  Tickets  to  Trans  ^ 
portatlon  Section,, 
File  Job  Cards  in  Triplicate  irv 
/rJachiTte  Tracks  in  Order  of  Sche* 
dale  Date  J 

DeUoerJob  Card  Coupons  to  Foremen, 

Date.  Stamp  *  Deiicor  Job  Cards 
to  Workmen  in  Order  of  Schedule 

J^eceitre  Job  Cards  from  WorkmerL 
and  Date  Stamp, 

Deliaer  Inspection^  Coupons  to  M' 
Sp  actors. 

Super  vise  Attendance  Job  Card 
Kacks, 

"Receiae  and  Account  for  Lates 
and  Absences, 

Report /dU  Machines  -orUndar 
Fepair  to  T^outin^  Section, 

Carry  all  MaiL. 


MEN      I 

Production  tftA^a^er, 

Assistant  Production  Manaysr, 

Superintenderift, 

Assistant  Superintendent, 

Foreman 

Stores  Chief  arid  Clerks, 

Transportation  Clerk  St  Mooemen, 

eieaator  Men,, 

Inspectors, 

Workmert, 


— I  DUTIES  I 

Ca  rry  out  all  Orde  r  3  Tfeceioed 
from  Despatching  Section  urith 
Means  Protrid^d  bi/  Other  Sec 
tions. 


\  INSPECT  \ 


JL 


—I    MEN     1 

Production  Manager, 
inspectors, 

— {  duties'] 

inspect  the  First  F*art  of  Each. 
Lot  on.  Each  Operation, 

Check  Each,  TturtenEacK  Operation 
as  Frequently  as  Possible, 

Peceio-e  and  /mresti^ate  all  Criti' 
eisrns  from.  Engineering  htspect' 
ors, 

Pmport  Findings  to  Foreman, 

Check  Workmen's  Claim,  of  Good 
Parts  on  Bonus  Jobs, 


-C 


\sronE  it  TnANSPow]\ 

'  T ' 


ENGINEERING  DIVISION 
ENGINEER 


MEN 


] 


Assistant  Production  Manayer, 

Chief  of  Stores, 

Stock  Men., 

Mouemen, 

ELeaator  Men, . 


H        DUTIES  \ 

fflaintain  Ledyers  of  All  Stores  on 
Hand, 

Apportion  Manafacturln/g  Orders 
and  Assembiy  Charts  to  Ledyers, 

ReauisUion  of  All  Materials  called 
for  by  ApportionTnents, 

ffeceiue.  Certify  to  Quantittj  and 
Store  AlL^aterials, 

Transport  AU  Materials  *on  Orders 
fr0m.  Despatchlnjs  Section  and  Main' 
tain  Scales,  Bins,  Trucks  andJSoies 
in  First  Class  Repair. 


\RESEhRCH\ 
_T 


I 


-^   Experiment^ 
-\Mecbanical  Test} 


H     Specify/      I  I 
Draft       I 


-{  Chemical  Test  I  H    Check        I 
•^Physical  Test  I  H     Trace        I 


^'Un^.\ 


J 


FVnCHASfr^G  DmS.'OM 
Tunc  HAS  IS<3  AGENT 


Blueprint 
tt  Supervise 


VnsfectioI^ 


Test  and  Inspect 
Purchased  Materials 


-\      Mark  el 


J  Test  and  Inspect 
Finished  Parts 


H    Pa.rch 


Test  and  Inspect 
Assemblies 


J 


j^e 


-C3i 


cure 


J     Maintain, 
Alterations 


.     T&st  and  Inspect 
Finished  Products 


H      Record 
^•jjltoute  Patterns 


Chapter  VIII 
CHANGES  IN  PRODUCT  AND  METHOD 

T7R0M  the  viewpoint  of  the  Management,  and  by 
•*■  this  is  meant  the  Company,  the  officials,  directors 
and  stockholders,  rather  than  the  active  managerial 
department  of  the  organization,  the  results  we  realized 
under  Scientific  Management  may  be  summarized  as: 
reduced  manufacturing  costs,  improved  product  and 
better  methods  in  production.  These  achievements  are 
all  evidenced  by  our  steadily  increasing  business,  the 
rapid  and  very  marked  increase  in  the  size  of  our 
plant,  our  freedom  from  all  labor  troubles  and  the 
enviable  rank  attained  by  the  Franklin  car. 

Through  a  reduced  manufacturing  cost,  a  reasonable 
surplus  has  been  provided  for  the  intensive  experi- 
mental work  so  necessary  for  a  continuance  of  prog- 
ress— work  which  has  become  a  pleasure  rather  than  a 
contemplated  hardship.  The  complete  and  accurate 
technical  data  compiled  of  manufacturing  methods  and 
truer  costs  have  made  an  equitable  expenditure  for 
experimental  work  available  for  larger  accomplish- 
ment. Better  space  and  better  apparatus  have  been 
provided,  and,  though  probably  with  no  influence  on  the 
ingenuity  of  the  engineering  organization,  it  has  made 
it  possible  for  them  to  work  directly  to  an  end  after 
essential  ideas  have  originated.  The  influence  of  a 
complex  product,  adding  confusion  and  cost,  as  against 

115 


f.  + 


^l 


'.if 


116 


THE   TAYLOR   SYSTEM 


one  more  simple  was  so  strongly  indicated  that  the 
facts  clearly  shown  added  force  to  the  then  existing 
managerial  opinion,  and  the  variety  of  product  was 
greatly  reduced — on  manufactured  parts  62  per  cent. ; 
on  special  purchased  parts  35  per  cent.,  and  on  miscel- 
laneous parts  19  per  cent.,  or  an  average  reduction  in 
variety  of  47  per  cent  This  change  occurred  from  one 
schedule  to  the  next.  On  account  of  a  simpler  prod- 
uct, a  very  much  better  and  less  costly  supervision  by 
engineering  inspectors  and  factory  supervisors  could 
be  given.  It  should  be  noted  that  this  change  oc- 
curred when,  except  in  a  very  few  cases,  automobile 
manufacturers  were  making  a  very  large  variety  of 
cars  in  relatively  limited  quantities. 

By  virtue  of  the  standards  established,  it  was  possi- 
ble to  determine  the  length  of  time  work  should  be 
in  process  from  the  date  of  requisition  of  material  to 
the  shipping  of  finished  product.  In  this  the  time  al- 
lowance for  the  purchasing  agent  to  bargain,  buy,  and 
deliver  to  stores  was  a  large  part.  Eequisitions  are 
explicit  regarding  the  time  for  delivery  of  material  on 
definite  dates.  The  time  allowed  for  the  purchase  of 
each  kind  of  material  as  it  repeats  for  succeeding 
schedules  is  established  to  agree  with  the  purchasing 
agent's  request,  and  this  time  is  unfailingly  guaran- 
teed by  the  manufacturing  department.  In  every  case 
the  purchasing  agent  now  has  opportunity  to  select  for 
quality  at  minimum  price. 

The  specific  delivery  of  our  materials  to  the  inspec- 
tors at  a  pre-determined  time  ahead  of  the  date  due 
to  issue  to  the  shops  allows  a  period  for  inspection  as 
inflexible  as  that  for  purchasing.  It  is  apportioned  in 
amount  to  the  needs  as  expressed  by  the  inspectors. 
Lots  requiring  chemical  analysis  are  never  rushed 


CHANGES   IN    PRODUCT    AND    METHOD 


117 


through  to  relieve  a  shortage  in  the  shops,  and,  al- 
though, as  is  always  the  case  where  men  must  do 
things,  mistakes  are  made,  the  proportion  is  negligible 
compared  to  errors  where  definiteness  with  regard  to 
I)urchase  time,  dates  of  delivery  of  material,  or  allow- 
ance for  inspection  is  ignored.  Incidentally  there  has 
come  a  benefit  to  product  through  the  stores  handling 
— a  marked  reduction  in  losses  due  to  shop-worn  parts, 
storage  batteries  "alive"  due  to  frequent  turn-over,  and 
tires  equipped  only  of  the  latest  serial  numbers.  That 
is,  the  orderly  arrangement  and  scientific  treatment 
of  materials,  especially  finished  purchased  goods,  have 
greatly  enhanced  the  quality  of  the  product  as  deliv- 
ered to  the  customer.  Parts  or  materials  rejected  by 
inspectors  as  being  unfit  for  use  are  controlled  as  in- 
tensely as  the  useful  ones,  eliminating  any  chance  of 
being  accidentally  re-routed  into  production. 

In  the  stores  room  a  reasonable  time  is  allowed  for 
the  stores  men  and  the  move  men  to  prepare  and  ship 
their  material  to  the  shops  in  good  condition  under  an 
economical  "ton-mile"  load.  In  the  shops  set  times  are 
allowed  for  each  production  operation,  a  standard 
allowance  time  between  operations,  and  time  for  parts 
inspection  at  each  operation  for  reasonable  flexibility 
and  opportunity  to  care  for  unusual  happenings.  Un- 
der the  lot  plan  this  causes  only  a  temporary  delay 
to  the  product  and  none  at  all  to  the  workers  if  some  of 
the  parts  are  in  need  of  repair,  owing  to  incomplete 
work  which  may  have  been  overlooked  by  the  man  or 
caused  by  carelessness  on  his  part,  or  some  defect  in 
the  tool  which  he  used.  There  is  not  the  pressure  com- 
ing from  a  large  number  of  men  waiting  in  line  for 
that  part,  because  the  work  which  each  is  to  do  has 
been  planned  for  him  only  after  an  allowance  of  time 


\^ 


118 


THE   TAYLOR    SYSTEM 


has  passed.  The  allowance  time  is  such  time  between 
operations  as  the  product  is  supposed  to  lie  tempo- 
rarily idle.  The  lot  size  or  "reservoir"  may  be  as  small 
or  as  large  as  desired,  so  long  as  the  man  changes  to 
other  work  when  it  reaches  a  certain  low  level.  The 
practical  certainty  of  control  on  account  of  known  time 
for  the  different  operations  and  the  intensive  regula- 
tion of  materials  and  tools  between  operations,  pre- 
cludes the  need  of  rushing  work;  although  at  times  this 
has  been  done  on  certain  parts,  it  is  not  in  any  way 
a  common  practice,  and  it  is  very  rare  that  a  standard 
lot  size,  after  once  started  on  an  operation,  is  broken 
down  to  make  room  for  a  "short"  part. 

The  extreme  care  which  is  exercised  in  the  control 
and  handling  of  well-designed  tools  in  shops  and  tool 
rooms  eliminates  much  chance  of  poor  work  going 
into  poor  product  or  high  scrap  cost.  The  workers  on 
standard  lots  act  strictly  as  individuals,  and  maintain 
rates  of  effort,  in  no  way  influenced  by  any  other 
worker.  That  is,  the  lot  on  which  they  are  work- 
ing is  not  wanted  by  any  other  worker  and  is  not  antici- 
pated by  anyone  until  it  is  completely  finished  on  its 
previous  operation ;  it  is  not  considered  available  for 
future  work  until  it  is  finished  and  has  passed  inspec- 
tion. With  due  allowance  time,  floor  inspection  can 
be  carried  on  without  detriment  to  the  schedules,  since 
inspection  time  is  recognized  as  part  of  the  producing 
time  and  has  been  standardized  as  such.  This  is  true 
with  final  inspection  and  with  any  mechanical  assem- 
blies. According  to  the  product  classification,  single 
parts  are  assembled  into  small  units;  the  units  again 
assembled  into  larger  ones. 

As  each  of  these  units  is  assembled  it  passes  through 
inspection.    Not  only  are  the  pieces  inspected  as  such, 


CHANGES    IN    PRODUCT    AND    METHOD 


119 


1 


but  they  are  inspected  in  each  of  the  subsequent  units 
as  a  check  for  their  fitness  in  the  making  of  the  unit. 
Work  which  may  be  found  by  the  inspectors  to  be  in- 
complete is  sent  for  repair,  not  to  the  workman  to  rush 
through  on  his  own  time,  but  rather  to  a  repairs  de- 
partment in  which  special  machinery  and  skilled  men 
are  segregated  for  the  purpose.  Such  parts  receive 
extra  inspection  from  the  engineers,  and  are  used  only 
when  the  repair  can  exactly  satisfy  the  original  speci- 
fication. This  permits  the  work  to  move  with  rapidity 
and  gathers  up  such  parts  as  can  be  readily  repaired 
and  returned  to  production.  The  responsibility  for 
such  repairs  is  accounted  for  by  the  workman  or  tool 
department  at  a  subsequent  rating  period. 

The  improvement  and  uniformity  in  product  which 
this  care  has  brought  about  has  made  it  possible  for  us 
practically  to  reproduce  a  complicated  assembly  made 
up  through  some  12,000  distinct  operations,  so  that 
there  is  very  little  choice  in  the  finished  product. 
There  was  a  time  when  dealers  would  solicit  respon- 
sible persons  to  "pick  out  a  good  car  for  them."  It 
is  so  long  since  we  have  been  approached  on  such  a 
subject  that  we  had  almost  forgotten  that  it  ever  oc- 
curred. This  uniformity  in  reproduction  has  brought 
a  standard  of  quality  to  create  a  confidence  in  our  re- 
peat purchasers  that  is  in  itself  no  small  satisfaction. 
Not  only  have  the  mechanical  engineering  features  been 
consistently  developed,  but  it  has  seemed  possible  to 
add  many  niceties  to  the  product  and  to  improve  qual- 
ity of  fittings  and  accessories  in  the  face  of  reduced 
sales  prices,  higher  wages,  and  greater  profits. 

In  manufacturing  methods  there  has  been  a  marked 
development  in  apparatus  for  parts  and  in  ways  and 
means  of  producing  assemblies.     Many  influences  be- 


120 


THE  TAYLOR   SYSTEM 


sides  system  and  Taylor  methods  have  acted,  it  is  true, 
but  only  by  close  observation  and  from  records  com- 
piled during  the  years  of  practice  of  the  Taylor  System 
are  we  able  to  localize  improvements  as  due  to  this 
system  or  caused  by  other  things. 

The  old  method  of  supervising  manufacture  was 
approximately  as  follows:  Each  manufacturing  order 
called  for  a  miscellaneous  part  or  assembly,  and  the 
assembly  order  contained  a  specification  of  the  parts 
which  were  to  be  used  in  that  assembly.  Part  orders 
were  written  quite  independently  of  the  requisition  for 
material,  and  no  date  was  specified  for  the  part  to  be 
due  in  finished  stores.  The  orders  were  written  for 
quantities  of  25,  50,  75,  and  100;  and  in  general  it  did 
not  matter  whether  the  part  was  small  or  large,  except 
in  the  case  of  automatic,  screw  machine,  or  punch 
work,  when  an  order  for  the  full  quantity  for  the  sea- 
son was  usually  written.  These  orders  were  not  appor- 
tioned to  the  material  ledgers,  and  therefore  it  was  a 
case  for  the  most  persuasive  foreman  to  get  from 
stores  the  material  for  his  parts.  He  could  draw  from 
stores  on  requisition  at  any  time  he  could  find  some 
material;  and,  unless  he  had  a  shortage  notice,  could 
finish  his  order  at  any  time  he  saw  fit.  He  had  a 
schedule  for  parts  to  guide  him.  This  consisted  merely 
of  a  schedule  for  a  month's  production  of  the  different 
types  of  cars,  set  back  as  many  months  as  our  prog- 
ress clerk  assumed  the  work  would  need  to  start  and 
be  delivered  in  time  to  the  finished  store-room  for  issue 
to  assembly.  "We  had  but  few  small  assemblies.  A 
single  group  issue  for  one  of  our  large  assemblies 
might  demand  as  high  as  a  quarter  of  the  variety  of 
parts  in  the  finished  stores. 

After  the  assembly  order  was  issued  it  was  given 


CHANGES   IN   PRODUCT   AND   METHOD 


121 


to  the  finished-stores  keeper,  who  was  required  to  de- 
liver the  materials  to  assembly  against  that  order  as 
rapidly  as  possible.  When  first  parts  of  the  lot  were 
delivered  to  the  assembly  floor,  the  assemblers  started, 
put  them  together,  and  from  that  time  on  tracers  tried 
to  force  the  parts  which  were  lacking  through  the 
shops  on  the  remaining  operations  and  in  and  out  of 
the  finished-stores  room  to  the  assembly  floor.  It  was 
a  merry  chase. 

One  result  of  this  was  that  operation  set-ups  varied 
from  one  to  one  hundred  pieces,  and  on  the  same  part 
might  vary  in  this  complete  scale. 

With  an  average  of  ten  operations  on  different  draw- 
ing numbers,  or  parts,  to  each  machine,  and  with  the 
preparation  time  of  the  machines  uncertain,  confu- 
sion resulted  by  interference  of  orders  from  the  dif- 
ferent shortage  chasers.  Very  high  costs  were  thus 
created. 

However,  we  produced  cars  for  a  number  of  years 
under  these  conditions,  and  still  believe  that  we  repre- 
sented a  high  order  of  working  efficiency  in  the  auto- 
mobile industry  of  the  time.  In  fact,  there  are  many 
plants  which,  even  now,  are  operated  under  very  simi- 
lar conditions  in  the  belief  that  they  are  efficient. 

Engineering  changes  in  those  days  were  frequent, 
the  demands  of  the  buying  public  uncertain ;  and  at  that 
time  it  seemed  to  us  such  changes  were  the  only  way 
of  solving  the  problem. 

Now  we  can  see  how  it  could  have  been  solved  in  a 
very  much  better  way  even  with  full  complications  of 
a  variety  of  models  and  many  changes. 

When  we  began  the  classification  of  our  product  the 
elimination  of  this  confusion  and  trouble  also  began. 
Through  the  findings  by  the  classification  of  this  prod- 


122 


THE   TAYLOR    SYSTEM 


net,  our  whole  sclieme  of  control  of  work  has  come 

about. 

We  were  impressed  with  the  fact  that  in  a  complex 
assembled  product  the  least  unbalance  in  production 
of  single  parts  or  groups  must  invariably  cause  con- 
gestion of  work  in  process  and  materials  in  storage,  and 
also  a  temporary  suspension  of  work  in  some  divisions 
followed  by  a  corresponding  period  of  excessive  activ- 
ity. There  would  first  be  unemployment  and  then  over- 
employment ;  part  of  the  plant  and  machines  idle,  and 
later  greatly  under  needed  capacity.  Delayed  or  lim- 
ited materials  may  easily  be  the  cause  of  a  greater  con- 
gestion than  material  well  in  advance  of  schedules. 
Either  condition  causes  not  only  extreme  dissatisfac- 
tion to  the  persons  affected,  but  it  means  an  unneces- 
sarily large  permanent  investment  in  buildings  and 
fixed  equipment,  as  well  as  in  material  and  labor.  A 
uniform  burden  on  the  works  at  a  minimum  invest- 
ment charge  is  so  desirable  that  all  possible  effort  to 
accomplish  it  will  be  repaid. 

This  result  can  best  be  accomplished  if  a  classified 
product  with  standardized  methods  is  managed  by  an 
appropriate  control  plan  continuously  and  intelligently 
applied.  Through  the  mechanism  of  our  Control 
Boards  and  a  lateral  movement  of  the  strips  on  which 
the  operation  cages  are  placed,  the  re-scheduling  of  our 
operations  on  a  part,  as  was  explained  in  Chapter  V, 
is  easily  obtained.  This  mechanical  adjustment  is  no 
particular  hardship  for  the  clerks,  so  there  is  no  rea- 
son why  full  advantage  of  any  improvement  in  short- 
ening in  mechanical  methods,  no  matter  how  slight, 
cannot  be  taken. 

Among  the  many  beneficial  standards  we  have  estab- 
lished is  that  of  machine-hour  burdens  as  used  for  the 


CHANGES   IN    PRODUCT    AND    METHOD 


123 


control  of  working  capacity  and  to  stabilize  the  con- 
tinuity of  service  of  the  worker.  What  machines  and 
how  many  for  a  given  rate  of  output  for  a  known 
product — the  deciding  factors — is  a  perplexing  ques- 
tion. 

Expert  mechanics  of  highly  inventive  ability  in  the 
planning  room  will  specify  the  first  part  of  this  ques- 
tion ;  i.e.,  "What  machines  ?"  The  regulation  of  "How 
many?"  to  produce  a  varying  schedule  of  output  can 
then  be  secured  through  exact  record  of  the  time  in 
which  the  machine  can  produce  each  operation  on  each 
piece  which  is  routed  over  it.  If  the  product  is  one 
similar  to  that  now  considered,  a  burden  record  can 
be  compiled  to  show  each  machine,  by  number  or  sym- 
bol, with  all  operation  time  routed  to  it,  for  one  unit 
of  the  finished  product.  The  sum  of  such  time  for  each 
machine  multiplied  by  the  number  of  product  units 
to  be  made  each  day  will  give  the  daily  task.  This 
daily  task  divided  by  the  number  of  machines  will 
give  the  daily  burden.  This  burden  divided  by  the 
number  of  time  units  in  a  standard  day  will  show  the 
number  of  machines  required. 

Two  essentials  for  the  success  of  this  plan  are: 
proper  time  allowance  for  machine  break-downs  or  idle- 
ness, and  exact  knowledge  of  unit  times  for  operations. 
There  is  no  way  of  securing  this  latter  except  by  ele- 
mental time  study.  Since  the  machine  operator's  ac- 
tivity is  a  factor  in  the  time  taken  by  the  machine,  the 
operator  must  accomplish  his  effort  in  the  set  time. 
This  is  prescribed  in  the  instruction  card  with  which 
the  operator  is  provided.  Eegardless  of  the  payment 
of  a  premium  or  bonus  to  the  man  for  special  attain- 
ments, it  is  absolutely  essential  for  the  welfare  of  his 
fellows,  as  well  as  for  the  stability  of  the  business, 


124 


THE   TAYLOR    SYSTEM 


that  the  machine  unit  times  be  obtained  and  applied. 
Any  delay  of  a  part  causes  a  delay  of  the  assembly 
into  which  it  goes,  with  a  consequent  suspension  of 
work  in  the  assemblies. 

The  operations  on  parts  that  go  over  each  machine 
having  been  recorded,  from  the  schedule  of  the  par- 
ticular operation  of  that  part  which  must  be  first 
worked  upon,  a  date  can  be  given  for  the  delivery  of 
the  machine  to  its  place  on  the  work  floor. 

Any  machines  planned  for  the  same  time  and  qual- 
ity of  work  are  speeded,  powered,  and  made  exactly 
alike  in  all  mechanical  respects.  They  are  then  classed 
in  groups,  so  that  work  routed  to  one  can  be  placed 
upon  any  of  the  others  with  certainty  of  predetermined 
standard  performance.  The  group  carries  the  group 
burden,  and  in  all  respects  acts  as  one  machine.  Each 
machine  in  the  group  is  regularly  inspected  and  re- 
paired. 

If  two  or  more  operations  on  different  parts  must 
come  to  the  same  fixture  in  the  path  of  their  progress 
to  the  product,  the  order  in  which  they  shall  come  and 
the  length  of  time  the  fixture  can  be  applied  to  any 
one  of  the  parts  is  a  fundamental  of  the  control  of 
schedules,  and  is,  quite  obviously,  dependent  upon  the 
"lot  quantity."  I  am  well  satisfied  that  by  establishing 
a  standard  lot  quantity  for  each  of  the  parts,  so  that 
in  any  given  "set-up"  the  run  of  that  set-up  can  be 
reasonably  economical,  is  an  entirely  satisfactory  way 
of  dealing  with  this  complex  requirement — i.e.,  the 
quantity  of  output  should  be  governed  by  the  fre- 
quency of  starting  lots.  If  the  "lot  size"  is  too  large, 
other  parts  routed  to  that  fixture  will  fall  behind;  if 
too  small,  the  frequency  of  change  may  be  too  great. 
This  does  not  preclude  a  continuous  run  on  any  one 


CHANGES   IN   PRODUCT    AND    METHOD 


125 


operation  if  a  sufficient  numbei  of  lots  of  the  same  kind 
succeed  in  reaching  the  fixture  before  another  part  is 
due  at  the  same  fixture. 

If  a  complex  product,  such  as  the  automobile,  type- 
setting machine,  player  piano,  or  any  such  complicated 
assembly,  is  made  in  quantities  under  6,000  per  year 
of  one  type,  there  is  practically  no  chance  to  take  ad- 
vantage of  one  operation  at  one  machine  for  one  work- 
man. Siiigle  mechanical  operations  on  such  product, 
due  to  the  smallness  of  the  parts  and  the  speed  at  which 
the  work  can  be  done,  require  usually  much  less  than 
25  minutes.  It  will  require  25  minutes  for  any  oper- 
ation on  a  production  of  6,000  to  give  a  full  year's 
work  to  one  operator.  The  frequency  of  change  of 
operations  can  be  determined  by  dividing  the  number 
of  minutes  in  the  working  hours  of  the  year,  nor- 
mally 27,000  hours  (152,000  minutes),  by  the  number 
of  pieces  to  be  made  in  the  year.  This  will  give  the 
number  of  minutes  per  part  allowed  for  the  operation 
which,  compared  to  the  number  of  minutes  which  the 
operation  will  take,  indicates  thereby  the  total  number 
of  changes  which  will  occur.  From  this  will  be  found, 
in  a  very  large  part  of  industry,  that  there  is  slight 
danger  of  workmen  operating  as  specialists  even  if 
they  so  desire. 

We  established  standard  lot  sizes  early  in  1912,  and 
only  within  recent  months  have  our  schedules  increased 
to  the  point  that  continuous  uninterrupted  manufac- 
ture on  one  part  may  be  economically  carried  out.  If 
the  lot  size  has  been  accurately  determined,  and  very 
strict  regulations  put  into  force  that  a  lot  once  started 
cannot  be  broken,  the  control  of  frequencies  of  change 
at  machines  is  at  once  possible  under  a  centralized  con- 
trol department. 


ri^ 


126 


THE   TAYLOR   SYSTEM 


There  is  a  strong  tendency  shown  by  manufacturers, 
who  merely  imitate  the  methods  of  some  of  their  com- 
petitors, to  overlook  quantities  of  product  as  being  one 
of  the  fundamental  requirements  for  such  use.  In  the 
kinds  of  products  above  mentioned,  a  change  in  quan- 
tity from  6,000  to  15,000  per  year,  if  economically  made, 
will  call  for  almost  different  forms  of  shops,  of  meth- 
ods, of  machine  lay-outs,  and  of  workmen.  In  the  first 
place,  with  a  variety  of  operations  in  limited  quantity, 
"all  round"  skilled  men  and  standard  machines  are  han- 
dled. In  the  second  case,  where  larger  quantities  for 
special  machinery  and  specialists  trained  only  in  the 
one  operation  are  required,  for  maximum  economy, 
there  must  be  a  firm  determination  that  the  quantities 
produced  are  far  enough  away  from  the  median  be- 
tween the  two  to  make  one  method  or  the  other  a 
standard  of  practice.  The  application  of  particular 
methods  can  be  determined  readily  through  a  study 
of  time  required  for  various  classes  of  productive  ef- 
fort. In  industrial  processes  they  will  include  the  fol- 
lowing requirements,  indicated  by  orders  of  work, 
arranged  from  the  lowest  to  the  highest  order  in  manu- 
facturing efficiency: 

(a)  One  order  for  one  piece.    The  piece  never  to  be 
reproduced. 

(b)  One  order  for  several  pieces,  never  to  be  repro- 
duced. 

(c)  Kepeat  orders  at  irregular  intervals  for  one  or  few 

pieces. 

(d)  Kepeat  orders  at  irregular  intervals  for  many 
pieces. 

(e)  Repeat  orders  at  uniform  intervals  for  one  or  a 

few  pieces.  , 


CHANGES   IN   PRODUCT    AND   METHOD 


127 


(f)  Repeat   orders   at  uniform   intervals   for  many 
pieces. 

(g)  Continuous  or  standing  orders  for  the  same  piece. 

Any  industry  may  have  in  combination  one  or  more 
of  these  classes  of  effort  and  in  any  analysis  of  the 
industry  this  should  be  recognized.  The  industry 
should  be  classified  into  the  above  classes  and  a  con- 
trol plan  devised  in  such  a  manner  as  will  secure  the 
best  results  for  each  class.  A  general  control  plan  will 
then  be  devised  so  as  to  relate  the  classes. 

Forms  are  so  constantly  mentioned  in  connection 
with  any  manufacturing  system  that  to  understand 
clearly  what  forms  are  for  is  to  better  understand 
some  of  the  causes  for  changed  conditions  which  have 
been  related. 

To  carry  out  system  practically,  it  is  necessary  to 
provide  for  the  distribution  of  instructions  to  the  inter- 
ested persons.  I^rms  are  used  for  this  purpose.  They 
should  be  considered  as  instructions  developed  from 
the  fundamental  laws  of  system ;  and,  if  those  laws  be 
changed,  forms  must  also  be  changed.  It  is  conven- 
ient, at  times,  if  the  change  is  but  temporary,  to  in- 
struct through  the  medium  of  memorandum  or  letter, 
but  under  no  circumstances  should  any  change  in  the 
use  of  a  form  be  allowed  unless  by  written  instructions 
from  the  responsible  person  in  charge.  The  fewer  the 
forms  that  can  be  used  to  carry  out  the  instructions, 
the  easier  will  be  the  above  problem,  but  they  are  of 
little  value  unless  they  convey  specific  information. 

At  the  beginning  of  our  work,  a  study  of  the  plan 
of  supervision  developed  the  fact  that  the  manufacture 
consisted  almost  entirely  of  classes  (c)  and  (d)  in  the 
foregoing  classification. 
10 


fV 


128 


THE   TAYLOR   SYSTEM 


Tills  was  considered  undesirable  for  the  extensive 
manufacture  which  was  being  done.  It  was  caused 
by: 

First:  A  variety  of  models  and,  consequently,  of 
parts  In  small  quantities ; 

Second :  A  schedule  of  shipments  for  finished  product 
which  was  affected  by  the  seasons  and  was  therefore 
irregular. 

The  quantity  of  production  was  sufficient  to  give  eco- 
nomical returns  under  good  shop  practice,  and  in  fact 
the  Company  was  enjoying  prosperity.  As  it  was  its 
desire,  however,  to  reduce  the  sale  price  of  the  prod- 
uct to  the  lowest  possible  point,  an  entire  revamping 
of  methods  was  considered.  Briefly  the  following 
method  was  pursued. 

The  time  taken  to  perform  each  operation  on  the  part 
of  each  machine  was  determined  by  estimate  or  by 
actual  practice.  The  operation  times  were  then 
grouped  by  machines  and  compared. 

A  study  of  the  grouping  indicated  too  large  a  vari- 
ety for  manufacture  under  class  (g) ;  Le.,  "Continuous 
or  standing  orders  for  the  same  piece."  This  was  be- 
cause the  product  is  high  in  quality  and  requires  a 
great  amount  of  careful  workmanship ;  the  initial  mate- 
rials are  costly;  the  lowest  possible  sales  price  is 
therefore  larger  than  for  a  cheap  product  and  the 
demand  is  necessarily  considerably  less. 

Through  the  simplification  of  models  and  the 
change  in  the  delivery  of  the  finished  product  to  our 
sales  organization,  we  were  able  to  modify  the  effort 
and  bring  it  into  the  next  to  the  highest  class  of  manu- 
facturing effort,  (f ) — i.e.,  "Eepeat  orders  at  uniform 
intervals  for  many  pieces" — ^with  a  small  proportion  of 
the  product  under  class  (g).    However,  since  there  was 


CHANGES   IN   PRODUCT    AND   METHOD 


129 


but  a  relatively  small  amount  of  the  latter  class  or  of 
the  first  or  irregular  classes,  we  decided  to  plan  our 
main  control  for  the  one  class  only,  that  is  (f).  All 
irregular  classes,  such  as  toolwork,  machine  repair, 
manufacture  of  sundry  parts,  plant  repair,  etc.,  are 
segregated  in  a  separate  shop.  Class  (g),  or  continu- 
ous production,  is  considered  and  controlled  as  for 
class  (f),  repeat  orders.  All  cases  of  class  (e)  are 
obviously  controlled  as  for  class  (f),  repeat  orders. 

The  impression  has  become  so  grounded  that  the 
Taylor  System  is  a  set  of  fixed  forms  and  methods 
that  I  am  forced  to  say  that  in  no  case  have  we  found 
this  to  maintain.  But  quite  in  opposition  to  this  we 
have  found  that  as  product  and  machinery  change — and 
possibly  even  more  than  do  these — rules  and  regula- 
tions, fixtures,  and  methods  of  Scientific  Management 
are  as  subject  to  alteration  and  change.  As  trained 
engineers  must  be  alive  to  their  opportunities  to 
change  of  designs  and  as  factory  mechanics  to  the 
change  of  machines  for  more  economical  returns,  just 
so  must  those  in  charge  of  the  conduct  of  management 
in  the  Taylor  System  be  alert  to  the  designing  of  ways 
and  means  to  meet  the  complexities  of  changing  factors 
which  they  must  supervise. 


Chapter  IX 

CHANGES  WHICH  HAVE  AFFECTED  THE 

MEN 

GRATIFYING  as  have  been  the  results  brought 
about  by  the  changes  in  product  and  meth- 
ods, they  would  be  of  only  secondary  importance 
should  the  gains  not  be  permanent  and  assured  of  con- 
tinued betterment.  As  knowledge  once  gained  and 
properly  recorded  is  not  readily  lost  sight  of,  there 
should  be  no  question  of  the  permanency  of  gains  al- 
ready realized.  As  for  continued  betterment,  this  can 
only  be  assured  if  the  men  have  gained  and  benefited 
with  and  in  proportion  to  the  realizations  of  the  com- 
pany. If  this  has  been  true,  a  continuance  of  improve- 
ment cannot  fail  to  come  about. 

Summarized,  the  most  pronounced  results  which 
have  affected  the  men  are:  largely  reduced  turn-over 
of  labor,  larger  percentage  of  permanently  employed, 
higher  earnings  per  worker  as  recompense  for  greater 
achievement,  greater  satisfaction  in  accomplishment, 
materially  increased  knowledge  of  shops  practices  and 
office  methods,  relief  from  unfair  responsibilities,  bet- 
ter living  conditions,  shorter  working  hours  and  the 
generally  accepted  attitude  and  understanding  that  the 
management  is  to  serve  the  worker  in  full  measure 
as  his,  the  worker's,  industry  serves  the  management. 

The  matter  of  labor  turn-over  and  the  insecurity  of 

130 


CHANGES   WHICH    HAVE   AFFECTED    THE    MEN        131 

employment  are  such  important  considerations,  both 
from  the  viewpoint  of  the  workers  and  the  manage- 
ment, that  they  are  receiving  to-day  a  large  amount 
of  attention  from  organizations  throughout  the  coun- 
try, including  the  chambers  of  commerce,  many  of 
which  have  established  boards  for  research  leading  to 
a  correction  of  this  very  evident  evil.  In  an  address 
before  the  National  Metal  Trades  Association,  at  Wor- 
cester, in  April,  1914,  I  gave  this  subject  an  introduc- 
tory and  prominent  part.    Quoting  from  the  address : 

"If  a  community  could  so  select  its  industries  that  the 
average  peaks  of  laborers  employed  in  all  of  the  indi- 
vidual industries  gave  a  uniform  load  of  labor  in  the 
community,  it  would  be  well  worth  the  time  of  the 
civic  organizations  to  try  to  secure  such  industries  for 
their  community  as  would  tend  to  level  this  peak  load. 
Of  course,  if  individual  industries  could  level  their  par- 
ticular load,  this  would  automatically  care  for  itself. 
Although  this  can  be  approached  in  a  very  marked 
way,  it  cannot  be  as  perfect  as  in  the  case  where  in- 
dustries have  been  selected  by  a  community  for  this 
particular  quality. 

"Some  causes  of  peak  load  in  the  employment  of 
workmen,  beside  that  of  management,  are  uncertainty 
of  demand  for  product,  seasonable  demand  for  prod- 
uct, small  capital  invested  in  the  business,  strong  com- 
petition with  small  margin  of  profit.  Any  of  which 
can  be  materially  improved  by  plans  founded  upon 
analytical  study." 

I  have  not  only  not  changed  my  opinion  in  any 
sense  since  that  time,  but  have  become  more  firmly  con- 
vinced that  this  is  one  of  the  largest  possible  fields  for 
action  in  managerial  matters.    A  low  labor  turn-over 


132 


THE   TAYLOR   SYSTEM 


is,  in  general,  indicative  not  alone  of  good  management, 
as  far  as  product  control  is  concerned,  but  an  excel- 
lent indicator  of  the  human  relations  between  manage- 
ment and  men. 

In  December,  1915,  a  study  was  made  of  the  rela- 
tive turn-over  of  labor  in  departments  in  our  works 
operating  under  our  new  methods  of  management  and 
those  still  under  the  older  form.  We  found  in  the 
automobile  shops  where  the  improvements  had  been 
longest  applied,  that  20  per  cent,  of  the  force  were 
over  50  years  of  age;  5  per  cent,  over  60;  and  the 
average  age  was  37.  The  average  period  of  last  em- 
ployment for  the  whole  force  was  four  years,  for  one- 
half  of  the  force  selected  was  six  years.  By  last  em- 
ployment I  mean  that  a  worker  had  at  no  time  been 
out  of  our  employ  in  the  period. 

In  a  review  of  the  men  on  the  pay-rolls  at  the  begin- 
nings of  various  years  who  were  still  in  our  employ  in 
January,  1916,  we  found  the  following  percentages: 

Since  January  1,  1912,  51  per  cent. 

Since  January  1,  1913,  80  per  cent. 

Since  January  1,  1914,  86  per  cent. 

Since  January  1,  1915,  90  per  cent. 

Comparing  these  records  with  conditions  as  they  ex- 
isted in  1911,  the  improvement  is  surprising.  In  the 
Motor  Car  Department  in  that  year,  prior  to  any  active 
application  of  Scientific  Management,  our  labor  turn- 
over records  showed  that  16.9  per  cent,  of  the  men 
employed  were  laid  off  during  the  year,  for  one  rea- 
son or  another ;  47.5  per  cent,  resigned  and  9.2  per  cent, 
were  discharged. 

Another  evil  which  bears  very  directly  upon  the  ques- 
tion of  labor  turn-over,  one  which  is  frequently  a  con- 


CHANGES   WHICH    HAVE   AFFECTED   THE   MEN         133 

tributory  cause  therefor,  is  the  question  of  absences 
and  tardiness.  It  was  not  until  1913  that  we  had  accu- 
rately recorded  data  as  to  lates  and  absences,  so  that 
comparison  can  only  be  made  after  a  partial  instruction 
of  Scientific  Management.  The  improvement,  however, 
is  marked.  In  1913,  the  number  of  times  late  com- 
pared to  total  hours  worked  was  0.2  per  cent. ;  hours 
lost  by  lates  and  absences  compared  to  total  hours 
worked  3.6  per  cent.  In  1915,  times  late  compared  to 
hours  worked  0.09  per  cent.;  hours  lost  by  lates  and 
absences  compared  to  total  hours  worked  2.9  per  cent. 
While  the  relation  of  lates  to  hours  worked  is  but  an 
indicator,  it  is  nevertheless  permissible  for  compara- 
tive purposes,  since  the  hours  worked  are  proportional 
to  the  number  of  men  employed. 

The  permanency  in  employment  and  reduction  in 
labor  turn-over  made  possible  under  our  system  of 
management  was  well  exemplified  in  1916.  A  new 
model  was  brought  out  in  that  year  which  differed 
so  materially  from  our  previous  products  that  it  was 
deemed  advisable  completely  to  obsolete  all  parts  made 
prior  to  July  of  that  year  and  to  produce  a  complete 
new  set  of  parts.  This  necessitated  a  complete  change 
in  jigs  and  fixtures,  perishable  tools  and  even  machin- 
ery, for  the  operations  on  the  new  parts  differed  from 
those  for  previous  models.  As  the  old  work  was  wound 
up,  it  was  impossible  to  avoid  laying  off  some  of  the 
men,  but  the  shrinkage  in  number  of  old  workers  was 
not  only  in  no  sense  serious,  but  the  force  was  at  the 
same  time  being  increased  from  about  1,600  to  2,400 
men,  and  this  considerable  increase  in  employment  was 
made  in  the  face  of  an  unusual  scarcity  of  workmen. 
Furthermore,  it  was  necessary  that  the  men  employed 
be  general  workmen  and  not  operation  specialists.    Our 


132 


THE   TAYLOR   SYSTEM 


is,  in  general,  indicative  not  alone  of  good  management, 
as  far  as  product  control  is  concerned,  but  an  excel- 
lent indicator  of  the  human  relations  between  manage- 
ment and  men. 

In  December,  1915,  a  study  was  made  of  the  rela- 
tive turn-over  of  labor  in  departments  in  our  works 
operating  under  our  new  methods  of  management  and 
those  still  under  the  older  form.  We  found  in  the 
automobile  shops  where  the  improvements  had  been 
longest  applied,  that  20  per  cent,  of  the  force  were 
over  50  years  of  age;  5  per  cent,  over  60;  and  the 
average  age  was  37.  The  average  period  of  last  em- 
ployment for  the  whole  force  was  four  years,  for  one- 
half  of  the  force  selected  was  six  years.  By  last  em- 
ployment I  mean  that  a  worker  had  at  no  time  been 
out  of  our  employ  in  the  period. 

In  a  review  of  the  men  on  the  pay-rolls  at  the  begin- 
nings of  various  years  who  were  still  in  our  employ  in 
January,  1916,  we  found  the  following  percentages: 

Since  January  1,  1912,  51  per  cent. 

Since  January  1,  1913,  80  per  cent. 

Since  January  1,  1914,  86  per  cent. 

Since  January  1,  1915,  90  per  cent. 

Comparing  these  records  with  conditions  as  they  ex- 
isted in  1911,  the  improvement  is  surprising.  In  the 
Motor  Car  Department  in  that  year,  prior  to  any  active 
application  of  Scientific  Management,  our  labor  turn- 
over records  showed  that  16.9  per  cent,  of  the  men 
employed  were  laid  off  during  the  year,  for  one  rea- 
son or  another ;  47.5  per  cent,  resigned  and  9.2  per  cent, 
were  discharged. 

Another  evil  which  bears  very  directly  upon  the  ques- 
tion of  labor  turn-over,  one  which  is  frequently  a  con- 


CHANGES   WHICH    HAVE   AFFECTED   THE   MEN         133 

tributory  cause  therefor,  is  the  question  of  absences 
and  tardiness.  It  was  not  until  1913  that  we  had  accu- 
rately recorded  data  as  to  lates  and  absences,  so  that 
comparison  can  only  be  made  after  a  partial  instruction 
of  Scientific  Management.  The  improvement,  however, 
is  marked.  In  1913,  the  number  of  times  late  com- 
pared to  total  hours  worked  was  0.2  per  cent. ;  hours 
lost  by  lates  and  absences  compared  to  total  hours 
worked  3.6  per  cent.  In  1915,  times  late  compared  to 
hours  worked  0.09  per  cent.;  hours  lost  by  lates  and 
absences  compared  to  total  hours  worked  2.9  per  cent. 
AVhile  the  relation  of  lates  to  hours  worked  is  but  an 
indicator,  it  is  nevertheless  permissible  for  compara- 
tive purposes,  since  the  hours  worked  are  proportional 
to  the  number  of  men  employed. 

The  permanency  in  employment  and  reduction  in 
labor  turn-over  made  possible  under  our  system  of 
management  was  well  exemplified  in  1916.  A  new 
model  was  brought  out  in  that  year  which  differed 
so  materially  from  our  previous  products  that  it  was 
deemed  advisable  completely  to  obsolete  all  parts  made 
prior  to  July  of  that  year  and  to  produce  a  complete 
new  set  of  parts.  This  necessitated  a  complete  change 
in  jigs  and  fixtures,  perishable  tools  and  even  machin- 
ery, for  the  operations  on  the  new  parts  differed  from 
those  for  previous  models.  As  the  old  work  was  wound 
up,  it  was  impossible  to  avoid  laying  off  some  of  the 
men,  but  the  shrinkage  in  number  of  old  workers  was 
not  only  in  no  sense  serious,  but  the  force  was  at  the 
same  time  being  increased  from  about  1,600  to  2,400 
men,  and  this  considerable  increase  in  employment  was 
made  in  the  face  of  an  unusual  scarcity  of  workmen. 
Furthermore,  it  was  necessary  that  the  men  employed 
be  general  workmen  and  not  operation  specialists.    Our 


I 


134 


THE    TAYLOR    SYSTEM 


turn-over  in  this  new  force,  which  has  now  become  per- 
manently fixed,  did  not  exceed  50  per  cent,  of  the 
number  of  men  on  the  pay-roll  at  the  end  of  the 
year. 

Lack  of  skill  on  the  part  of  men  who  apply  for  me- 
chanical work,  and  in  times  of  pressure  the  lack  of 
time  in  which  to  train  them,  is  one  of  the  large  causes 
of  our  labor  change.  So  many  more  men  must  be 
employed  to  carry  out  a  task  than  are  finally  required 
after  they  have  become  skilled  and  adapted  to  their 
task,  that  there  must  come  a  time  when  a  considerable 
reduction  in  number  is  necessitated.  In  fact,  this  is 
one  of  the  real  regrets  of  a  manager  who  is  obliged 
to  employ  a  somewhat  untrained  force  in  larger  num- 
bers than  should  be  required  to  get  out  the  work ;  and 
as  this  force  becomes  skilled,  to  reduce  it  by  the  neces- 
sary lay-off  of  men  who  have  earnestly  tried  to  bring 
the  production  up  to  the  sales  requirement.  Happily, 
our  schedules  have  so  increased  that  this  has  not  oc- 
curred to  an  appreciable  extent.  Those  who  do  go, 
furthermore,  take  with  them  acquired  skill  which  is 
of  great  aid  in  establishing  future  permanency. 

There  is  little  question  but  that  the  average  earnings 
of  our  workmen  with  decreased  work  hours  are  greater 
than  in  any  shops  of  which  we  know  in  this  employing 
district.  Even  prior  to  the  time  when  our  method  of 
rating  workers  began  to  show  its  effect,  late  in  1916, 
wage  rates  were  not  increased  intentionally  to  com- 
pete with  other  employers,  and  the  fact  that  there  were 
no  losses  from  our  force  is  unquestionably  due  to  the 
equity  we  have  always  aimed  to  establish  in  our  deal- 
ings. Our  men  earned  their  increased  wages  and  re- 
ceived them  as  a  simple  question  of  justice. 

To  keep  our  workmen  employed  it  has  been  essential 


CHANGES    WHICH    HAVE    AFFECTED    THE    MEN 


135 


that  costs  either  remain  at  least  at  the  same  levels  or 
decrease.  If  a  wage  increase  in  a  given  industry  in- 
creases the  product  cost  more  than  the  ingenuity  of 
the  planning  department  or  suggestions  of  workers  or 
other  efforts  can  decrease  it,  there  is  sure  to  come  an 
outside  vendor  offering  to  manufacture  and  sell  to  us 
those  very  articles  at  less  than  our  own  costs.  No 
manager,  however  philanthropic  he  may  be,  can  con- 
scientiously retain  the  work  in  his  shops  in  the  face  of 
such  a  bid.  If  the  sale  price  of  his  product  remains 
the  same  and  he  does  continue  to  manufacture  with 
cost  increases  due  to  high  wages,  the  gross  profits  of 
the  business  will  naturally  be  less,  and  the  distribution 
of  earnings  to  workers  and  stockholders  must  in  turn 
be  less  than  if  the  local  work  had  not  been  continued. 
If  the  business  goes,  the  workers  in  the  local  industry 
are  naturally  laid  off  for  an  indeterminate  period.  If 
the  vendor  taking  the  business  is  not  in  the  immediate 
vicinity,  it  is  a  long  time  before  the  employment  of 
men  caused  by  his  new  business  reaches  out  to  include 
those  who  have  been  laid  off.  It  is  further  evident 
that  if  his  wage  rates  happen,  as  is  probably  the  case, 
to  be  lower,  the  worker  so  laid  off  must  take  the  lower 
rate  upon  re-employment.  This  is  but  one  of  the  many 
necessary  conditions  which  arises  where  wage  rates, 
larger  than  customary,  increase  costs.  This  was  con- 
sidered at  the  time  of  our  studies  which  led  up  to  the 
relative  rating  of  workers.  And,  as  has  been  observed, 
the  influence  of  the  workers  upon  fixed  charge  savings, 
his  savings  by  virtue  of  attendance  and  acquired  skill 
and  low  spoilage  losses,  were  provided  as  a  part  of  the 
extra  recompense  for  the  high  wage  without  corre- 
sponding increase  in  the  total  cost  of  the  product. 
This  matter  of  increased  earnings  was  discussed  so 


136 


THE   TAYLOR    SYSTEM 


thorouglily  in  Chapter  VI  that  it  does  not  seem  neces- 
sary to  repeat  it  here. 

No  small  part  of  the  comfort  at  the  end  of  a  day 
comes  from  the  satisfaction  of  having  done  ^  good  job. 
The  satisfaction  is  just  as  great  for  the  worker  at  his 
machine  during  the  day  who,  by  acquired  knowledge, 
materially  increases  his  output  with  a  minimum  of 
fatigue  and  a  minimum  of  product  loss.  It  is  very  dis- 
couraging to  find  after  a  large  amount  of  work  has 
been  done,  that  tools  were  slightly  defective,  that  ma- 
chines were  not  precise,  or  that  the  measuring  instru- 
ments or  gauges  had  varied  from  the  required  dimen- 
sions. I  believe  a  workman  is  for  this  cause  more  de- 
pressed (a  depression  materially  enhanced  by  the  criti- 
cism on  the  part  of  his  sui)ervisor),  than  he  could  pos- 
sibly be  because  of  the  loss  of  extra  earnings.  Under 
present  conditions  there  is  practically  no  indefiniteness 
as  to  what  is  to  be  done,  or  how  it  is  to  be  done,  or 
when  it  is  to  be  done,  or  what  it  is  to  be  done  with,  or 
the  time  it  is  to  take ;  and  I  am  satisfied  that  my  rela- 
tions are  close  enough  to  our  workers  so  that  they 
know  that  the  things  which  are  discouraging  to  them 
will  receive  a  considerable  portion  of  my  personal 
attention.  They  have  been  free,  and  have  taken  full 
advantage  of  their  privilege,  to  criticise  poor  condi- 
tions. I  am  happy  to  say  that  they  have  not  forgot- 
ten to  express  their  appreciation  as  improvements 

occur. 

One  of  the  features  of  the  Taylor  System  is  an  in- 
struction card  as  a  part  of  an  educational  system  which 
is  not  excelled,  and  I  am  sure  not  equalled,  in  any  of 
the  educational  institutions  which  teach  shop  practice 
or  manual  arts.  Not  only  are  the  very  best  mechanical 
devices  provided  that  the  most  ingenious  men  can 


CHANGES    WHICH    HAVE   AFFECTED    THE    MEN         137 

think  of,  but  the  instructions  for  their  use  are  extraor- 
dinarily well  prepared  and  transmitted  to  the  users. 

During  1916,  because  of  complete  change  of  design, 
we  faced  the  problem  of  obsoleting  all  of  the  parts  that 
were  in  our  production  standards  up  to  June  1st.  For 
the  new  product  an  entirely  new  set  of  parts  requir- 
ing new  tools  and  methods  and  new  information  were 
put  into  process.  T  am  safe  in  saying  that  if  the  draw- 
ings and  material  had  been  turned  over  to  our  shop 
force,  left  to  their  own  devices  to  produce  the  parts, 
we  would  not  have  completed  a  single  car  in  the  re- 
maining six  months  of  the  year.  Not  but  that  they 
could  have  in  the  meantime  studied  ways  and  means, 
but,  since  nearly  130,000  producing  hours  were  spent 
in  the  designing  and  making  of  tools  alone,  a  good 
share  of  the  force  would  have  devoted  much  time  to 
this  work,  and  when  done  would  have  provided  no  plans 
for  transmitting  instructions  as  to  use.  Under  the 
operation  of  our  present  system  of  departmental  as- 
signment and  work  performed  by  those  best  fitted  to 
undertake  it,  on  the  contrary,  there  was  but  a  tem- 
porary let-up  in  production,  and  by  the  beginning  of 
October  five  hundred  and  sixty-odd  new  model  cars 
had  been  produced.  Following  this  re-establishment  of 
productive  activity,  the  rate  of  production  has  in- 
creased much  more  steadily  than  at  any  other  period, 
and  by  June  of  1917  the  daily  car  production  reached 
forty-five. 

There  is  always  the  matter  of  fitness  for  a  task  to  be 
considered,  and  anyone  could  well  understand  the  lack 
of  judgment  in  requiring  the  design  and  construction 
of  tools  by  men  accustomed  to  the  shops,  as  against 
men  trained  in  the  skill  of  designing  and  drafting.  The 
results  attained  leave  no  question  of  doubt. 


138 


THE   TAYLOR   SYSTEM 


We  seek  for  suggestions  from  our  workmen,  and  we 
try  in  every  way  to  encourage  them  to  personal  devel- 
opment along  original  lines,  but  we  find  it  most  difficult 
to  apply  economically  such  suggestions  as  could  pos- 
sibly be  used  out  of  the  very  limited  number  submitted. 
In  general,  the  worker  is  so  busy  with  the  task  at  hand, 
whether  it  be  in  office  or  shop,  and  his  free  hours  are 
naturally  spent  in  pursuit  of  his  own  affairs,  that 
practically  very  little  opportunity  presents  itself  even 
to  those  who  strive  to  aid  through  the  suggestion  box. 

One  of  Doctor  Taylor's  well-remembered  statements 
is  that  he  "would  not  require  bricks  to  be  made  without 
straw."  I  believe  that  a  very  large  percentage  of  shop 
workers  in  this  country  have  that  requirement  put  up 
to  them  practically  every  hour  of  the  working  day. 
Happily  in  recent  years  the  change  from  this  condi- 
tion is  rapidly  coming  to  better  things.  To  demand 
that  a  shop  foreman  produce  his  schedule,  and  not  to 
consider  or  to  know  that  he  is  properly  supplied  with 
ways  and  means,  is  but  transmitted  from  him  to  the 
worker.  They  both  accept  the  orders  in  silence,  and 
the  one  giving  them  is  deceived  into  believing  that 
within  the  time  set  the  result  will  be  obtained.  The 
surprising  thing  to  me  is  how  many  times  one  giving 
such  an  order  can  stand  the  regularity  with  which  it 
fails  to  mature.  One  of  the  strongest  teachings  of 
Doctor  Taylor,  and  one  most  vigorously  practiced  in 
Scientific  Management,  is  that  of  issuing  the  order  to 
do  the  work  only  after  all  auxiliary  orders  providing 
for  it  have  been  executed.  The  workman  is  thus  not 
officially  called  upon  to  accept  responsibilities  until 
they  become  his  by  virtue  of  the  completed  prelim- 
inaries. 

An  analytical  study  in  a  factory  with  high  costs 


CHANGES   WHICH    HAVE   AFFECTED   THE    MEN        139 

quickly  indicates  the  need  of  good  working  conditions 
for  the  man.  Eigidly  set  and  well  guarded  machines 
will  remove  the  fear  of  rapid  operation  from  the 
chance  that  "something"  may  happen.  Only  owls  and 
bats  move  around  with  reasonable  freedom  in  the  dark, 
and  illumination  is  so  cheap  in  proportion  to  spoiled 
work  that  from  a  financial  standpoint  alone  Jhe  im- 
provement of  a  dark  condition  cannot  be  ignored. 
Aisles  restricted  by  piles  of  materials,  greasy  floors 
and  insecure  overhead  structures  cannot  be  tolerated  in 
a  shop  where  efficient  operation  is  a  part  of  the  pro- 
gram. Clean  windows,  pleasant  outlooks,  good  ven- 
tilation, sanitation,  and  heat  will  all  reduce  labor  turn- 
over to  a  marked  degree  and  bring  a  sense  of  good- 
fellowship  and  comfort  to  those  who  associate  in  this 
environment. 

We  have  been  fortunate,  through  records  from  the 
Mutual  Benefit  Association  (an  organization  composed, 
controlled  and  financed  entirely  by  the  workers),  to 
obtain  a  record  of  the  men  on  sick  leave  for  five  years. 
This  report  is  shown  herewith  quarterly  for  better  com- 
parison. It  lacks  anything  to  indicate  sickness  or  over- 
work brought  on  by  so-called  "speeding  up"  methods. 

PER  CENT.   OF   MEN   WHO  RECEIVED   BENEFIT 

1911     1912     1913  1914  1915 

1st   Quarter 11.1%  10.8%  9.7%  12.0%  12.7% 

2nd       **  8.2  13.9  8.4  9.5  10.2 

3rd       **         5.2  9.6  9.6  8J  8.0 

4th       "         7.7  7.9  8.1  8.4  6.9 

AVERAGES 8.2%  9.3%  9.0%  9.6%  9.1% 

A  complete  knowledge  of  what  is  to  be  done  and  this 
knowledge  given  to  the  workman  by  written  instruc- 
tions, allow  quite  unskilled  men  to  become  skilful.    Em- 


140 


THE   TAYLOR   SYSTEM 


ploying  men  for  wliat  tliey  can  learn  to  do,  and  not 
for  what  thev  know,  makes  rather  an  easy  task  for 
the  Employment  Superintendent.  Employment  cen- 
tered in  a  representative  of  the  chief  factory  execu- 
tive, and  discharge  possible  only  on  written  approval 
from  this  executive,  secures  steady  permanent  work- 
men. Wages  sufficient  to  allow  interest  in  outside  m- 
vestments,  working  hours  which  allow  time  to  super- 
vise and  enjoy  such  an  investment,  and  contmuity  of 
employment  assuring  a  permanency  of  this  investment, 
add  materially  in  establishing  the  force  and  assure  a 
steady  high-grade  output.  .   ,     r 

^YheTe  large  quantities  of  the  same  part  and  the  lim- 
ited performance  of  a  special  macliine  are  continuous, 
men  are  naturally  employed  on  limited  work.  This 
limited  work  is  not  a  function  of  a  particular  kind  of 
plan,  but  rather  an  economic  specialization  true  in  all 
branches  of  mechanical  activity,  from  the  engineer  on 
a  limited  train  to  the  farmer  at  his  plow.  The  miles 
to  go  or  the  acres  in  the  field  limit  the  frequency  of 
change  of  application  of  effort. 

The  management  no  longer  issues  orders  and  as- 
sumes little  responsibility,  but  now  it  issues  educa- 
tional orders  with  detailed  instructions  and  assumes 
the  full  responsibility  of  the  accomplishment.  The 
>vorker  is  practically  never  called  upon  for  an  explana- 
tion as  to  why  this  or  that  did  not  happen,  except  in 
a  case  where  a  worker  has  failed  to  accomplish  those 
things  which  are  both  for  his  best  interests  and  those 
of  the  management.  When  the  little  particles  which 
do  sift  through  the  managerial  screen  are  again  worked 
over,  there  will  be  none  left  unconsidered.  In  the  best 
managerial  plan  it  is  to  be  expected  that  some  unob- 
served  conditions  will  exist,  and  it  was  not  until  we 


QHANGES   WHICH    HAVE   AFFECTED   THE   MEN        141 

had  developed  our  close  relations  to  our  workers 
through  our  rating  plan  that  we  were  able  to  bring 
them  practically  to  the  100  per  cent,  basis.  Since 
intimate  relationships  have  been  established  with  the 
men,  investigations  are  maintained,  corrections  striven 
for  and  adjustments  brought  about,  whenever  possi- 
ble, until  each  legitimately  dissatisfied  worker  is  con- 
vinced that  any  departmental  conditions  affecting  him 
has  been  settled  to  his  best  interests.  In  every  investi- 
gation, it  may  be  added,  the  management  has  profited 
in  every  particular  as  has  the  worker.  The  manage- 
ment assumes  its  responsibilities  and  the  workman 
assumes  his. 

The  plan  of  dual  responsibility  under  old  methods 
showed  the  usual  weaknesses  of  indecisions  in  emer- 
gency, lack  of  correction  for  faults  due  to  uncertain 
responsibilities,  and  distrust  due  to  lack  of  knowledge. 
Opinion  was  pitted  against  opinion,  and  a  general  feel- 
ing of  indefiniteness  permeated  the  factory  atmosphere. 
Dates  called  for  by  the  management  were  not  kept 
by  the  foreman,  primarily  because  the  time  duration  of 
events  were  uncertain  and  irregular.  Material  short- 
ages were  frequent ;  tools  were  unsuitable  and  lacking ; 
machines  were  not  suited  to  the  purpose  and  in  poor 
repair;  tools  or  machines  were  not  standardized,  and 
work  could  not  be  rapidly  exchanged  from  one  to  an- 
other. Shortages  of  parts  were  constant  and  serious, 
causing  a  very  high  percentage  of  preparation  in  oper- 
ating time;  through  this  inefficiency  a  high  peak  of 
workman  effort  resulted.  The  change  in  number  of 
employees  was  frequent.  A  large  percentage  of  em- 
ployees were  poorly  trained  and  irregular  in  atten- 
dance. 

Under  the  present  F-^stem  of  management:  single 


142 


THE  TAYLOR   SYSTEM 


l| 


^     ! 


rosponsibility  has  brought  rapid  decision;  faults  are 
few,  and  causes  are  exactly  determined;  there  is  no 
indefiniteness  with  respect  to  any  element  of  effort  in 
the  plant;  dates  planned  for  are  almost  exactly  met 
in  a  large  percentage  of  events,  for  if  failure  to  keep 
dates  is  imminent,  all  available  help  can  be  concen- 
trated at  once  on  the  weakness  to  make  a  rapid  correc- 
tion. Material  shortages  are  small  and  infrequent,  and 
parts  shortages  are  also  infrequent  and  never  serious ; 
while  tools  and  machines  are  kept  in  first-class  condi- 
tion and  are  especially  selected  for  the  required  task. 
The  percentage  of  operating  to  preparing  time  is  high 
and  practically  constant.  Employees  are  much  bettor 
trained  and  show  less  avoidable  absence ;  and  as  there 
is  practically  no  peak  load  of  effort,  there  is  conse- 
quently little  change  in  numbers  of  employees.  Kates 
of  earning  show  a  marked  increase,  while  cost  of  com- 
parative product  shows  a  marked  decrease. 

Time  study  has  been  of  great  value  in  arriving  at 
these  results,  particularly  in  the  question  of  dates, 
where  it  has  proved  even  more  useful  than  it  has  in 
application  of  working  costs. 

As  typical  of  the  change  in  conditions,  I  quote  from 
a  communication  of  September,  1916,  by  our  Purchas- 
ing Agent,  which  is  characteristic: 

"Having  had  over  twelve  years  of  experience  in  buy- 
ing for  the  H.  H.  Franklin  Mfg.  Company,  the  writer 
has  naturally  seen  some  inside  development  in  auto- 
mobile manufacture.  In  the  early  days,  and  in  fact 
even  up  to  a  few  years  ago,  it  was  not  an  uncommon 
sight  to  see  the  whole  purchasing  staff  in  the  office 
at  nights  for  two  or  three  hours'  work,  working  not 
because  business  was  so  good,  nor  necessarily  because 
it  was  so  bad  either,  but  largely  because  we  did  not 


CHANGES   WHICH    HAVE   AFFECTED   THE    MEN        143 

know  just  what  materials  we  wanted  or  when  we 
wanted  them. 

"Our  scheme  for  requisitioning  and  buying  had  al- 
ways been  crude  and  largely  represented  guess-work. 
That  is,  when  a  requisition  was  issued  we  were  not 
always  sure  just  what  spoilage  or  other  loss  we  might 
experience,  and  consequently  it  often  happened  that 
we  had  too  little  stock  or  material  to  finish  the  job,  or 
perhaps  we  had  altogether  too  much. 

"Furthermore,  we  had  carried  on  no  systematic  time 
study  and  therefore  we  did  not  always  know,  in  fact, 
we  very  seldom  actually  knew,  just  when  the  material 
would  be  wanted  for  the  next  batch  of  orders.  In  a 
great  many  cases  this  all  meant  long  distance  telephone 
calls,  telegraphic  messages,  and  perhaps  someone  was 
sent  to  stay  with  the  source  of  supply  until  the  rush 
shipment  could  be  made,  and  then  came  enormous  ex- 
press charges. 

"But  worse  than  these  conditions,  we  were  not  in- 
frequently held  up  seriously  in  production,  which 
meant  the  laying  off  of  men,  loss  of  organization,  and 
no  finished  cars,  then  a  wail  from  the  sales  depart- 
ment and  dealers,  to  say  nothing  about  the  cry  from 
the  treasurer's  office  because  there  were  not  enough 
receipts  to  pay  the  bills. 

"Then,  on  the  other  hand^  we  often  received  mate- 
rials considerably  in  advance  of  our  needs,  which  meant 
another  cry  from  the  treasurer's  office  and  stock  keep- 
ers because  of  too  much  stock  and  of  too  heavy  an  in- 
vestment. You  would  be  amazed,  too,  if  you  were  made 
familiar  with  some  of  the  usual  large  manufacturers' 
losses  through  surplus  or  'dead  stock'  accounts. 

"The   purchasing   department   always    'caught    it,* 

both  coming  and  going,  and  those  were  the  days  we 
11 


144 


THE   TAYLOR    SYSTEM 


!  I 


really  worked — acted  first,  then  analyzed,  then  tried  to 
adjust. 

"All  of  these  conditions  caused  an  enormous  cost 
in  overhead  and  production,  but  of  course  the  consumer 
was  expected  to  pay  all  the  costs  and  offer  no  criti- 
cism. 

"To-day,  these  conditions  are  changed.  We  hardly 
ever  cancel  or  hold  up  an  order  now,  whereas  we  used 
to  spend  as  much  time  cancelling  or  holding  up  or- 
ders or  changing  specifications  as  was  spent  in  issuing 
the  original  specifications.  Our  sources  of  supply 
would  corroborate  this  statement. 

"We  issued  about  20,000  orders  last  year  and  will 
probably  place  from  22,000  to  23,000  this  year.  Our 
purchases  are  easily  ten  times  what  they  used  to  be, 
and  yet  less  effort  is  expended  in  this  department  for 
meeting  the  needs  of  the  works. 

"It  is  only  fair  to  state  that  when  the  Taylor  System 
was  first  being  studied  years  ago,  we  did  not  become 
particularly  enthused,  but  it  was  not  long  before  we 
could  easily  appreciate  that  a  future  for  the  Franklin 
Company  was  in  sight. 

"Before  any  requisitions  are  delivered  to  this  de- 
partment, the  requirements  are  carefully  analyzed  so 
tliat  deliveries  may  be  arranged  early  enough  and  yet 
not  too  early.  Notwithstanding  our  materially  in- 
creased production,  our  stores  investment  is  lower  than 
ever  before. 

"This  department  keeps  the  manufacturing  depart- 
ment informed  at  all  times  concerning  market  condi- 
tions, recommending  purchases  on  account  of  delivery 
conditions  such  as  now  confront  us,  and  keeping  them 
informed  regarding  price  fluctuations. 

"We  advise  them,  too,  regarding  the  length  of  time 


CHANGES   WHICH    HAVE   AFFECTED   THE    MEN         145 

desired  for  obtaining  materials ;  always  itemizing,  be- 
cause these  conditions,  as  all  will  readily  appreciate, 
require  frequent  changes.  This  enables  the  manufac- 
turing department  to  chart  their  requirements,  and 
leaves  little  or  no  excuse  for  late  specifications  and  sub- 
sequent tardy  deliveries. 

"Furthermore,  we  now  have  an  accurate  and  earlier 
line-up  of  costs.  We  used  to  price  parts  after  the 
materials  had  been  delivered  to  us.  Now  we  price  eas- 
ily 95  per  cent,  of  our  orders  when  they  are  placed. 

"Our  accounting  department,  as  well  as  our  produc- 
tion department,  is  given  copies  of  all  orders,  and  is 
therefore  always  in  possession  of  figures  showing  our 
obligations  and  costs  for  all  purchases. 

"Naturally,  it  is  necessary  to  have  some  sort  of  fol- 
low-up system  to  know  that  specifications  are  properly 
cared  for,  but  this  is  easily  looked  after  by  reviewing 
a  small  block  of  orders  each  day,  and  completing  a  can- 
vass of  all  orders  at  least  once  each  week." 

Since  the  personnel  of  the  organization  which  is  now 
carrying  on  our  managerial  work  is  practically  as  be- 
fore Mr.  Earth's  first  visit  in  1908,  and  since  improve- 
ments in  practically  every  direction  have  been  marked, 
I  believe  that  the  chief  cause  which  led  to  it  is  our 
change  of  attitude  toward  the  problem  gained  through 
Taylor  principles  for  the  carrying  on  of  the  manufac- 
turing effort.  The  changes  came  gradually:  First, 
better  stores — receiving,  storage  and  accounting;  sec- 
ond, better  classification  of  product,  tools,  and  meth- 
ods; third,  better  controlling  plans;  fourth,  adoption 
of  time  studies  and  rate  standardization;  fifth,  new 
machines  and  equipment.  Each  of  these  changes  oc- 
curred at  different  stages,  and  product  costs  which 
were  checked  against  each  of  the  stages  show  the  rela- 


! 


ilMl 


t  I 


t  ■ 


h 


14iB 


THE    TAYLOR    SYSTEM 


tive  effect.  In  none  was  the  change  more  pronounced 
than  that  of  better  control.  This  was  to  be  expected, 
since  the  control  was  merely  a  co-ordination  of  all  of 
the  others. 

We  are  obliged  to  conclude  that  the  Taylor  System 
in  Franklin  Management  has  been  successful  in  reach- 
ing useful  ends,  which  it  would  appear  could  not  be 
attained  without  it;  that  instead  of  substituting  for 
executive  ability,  it  depends  greatly  upon  this  for  its 
success.  It  does  not  in  any  sense  eradicate  the  human 
element,  but  brings  forth  the  very  best  that  is  in  men 
or  women  subject  to  its  influences.  It  is  very  impor- 
tant that  form  or  method  be  eliminated  as  fundamental 
for  Scientific  Management,  for  it  is  only  through  a 
scientific  study  of  the  problem  to  be  solved  that  the  cor- 
rect solution  will  be  indicated. 


Chapter  X 
THE  EESULTS   GRAPHICALLY  DEPICTED^ 

AN  analytical  review  of  the  results  attained  under 
the  Taylor  System  of  Management  at  the  Frank- 
lin plant,  during  the  five  years  it  has  been  in  effective 
operation,  shows  a  number  of  desirable  gains.  The 
organization  has  grown  and  apparently  prospered, 
while  at  the  same  time  the  workers  have  been  mate- 
rially benefited.  A  spirit  of  cooperation  and  mutual 
respect  permeates  the  shops.  Capital  and  Labor  seem 
to  have  buried  the  hatchet,  as  is  evidenced  by  the  free- 
dom from  all  labor  troubles.  The  workers  appear  con- 
tented, energetic  and  desirous  of  increasing  their 
knowledge  and  efficiency,  while  the  organization  shows 
a  firm  and  healthy  development. 

The  growth  and  activities  of  the  industry  are  graph- 
ically shown  on  Chart  I,  which  depicts  not  only  the 
increased  production  of  cars  month  by  month,  but  also 
records  the  number  of  workers  employed — from  the 
middle  of  1908,  when  the  introduction  of  Scientific 
Management  was  first  taken  under  advisement,  until 
the  summer  of  1917.  The  increase  in  the  monthly  pro- 
duction of  cars  might  not  alone  indicate  the  marked 
and  continuous  growth  which  has  been  made  by  the 
organization,  but  when  the  proportional  increase  in  the 
number  of  workers  employed  is  taken  into  considera- 
tion there  can  remain  no  question  as  to  the  expansion 
of  the  business.  It  will  be  noted  that  the  lines  depict- 
ing production  and  employment  are  quite  similar  in 

»By  Reginald  Trautschold. 

147 


148 


THE   TAYLOR   SYSTEM 


their  general  trend ;  that  is,  when  many  cars  were  pro- 
duced a  corresponding  large  number  of  workers  were 
employed. 

Scientific  Management  was  practically  applied  in  the 
Franklin  plant  July,  1912,  and  it  is  quite  apparent  that 
both  production  and  employment  have  been  much  more 
regular  since  that  date  than  prior  thereto.  The  smooth, 
broken  line  curves  represent  mean  values  and  estab- 
lish the  general  trend  of  the  development.  Here  again 
is  to  be  noted  a  matter  of  considerable  interest.  There 
is  a  marked  change  in  the  directions  of  the  curves  de- 
picting mean  values  in  July,  1916 — in  fact,  there  are 
two  sets  of  such  curves  intersecting  on  the  ordinate  of 
that  date.  This  indicates  the  change  in  variety  of  prod- 
uct and  the  commencement  of  new  activity  on  a  much 
more  intensive  scale.  At  times,  prior  and  subsequent 
to  July,  1916,  production  exceeded  the  mean  and  at 
other  times  did  not  equal  such  value,  but  the  general 
growth  followed  closely  the  smooth  accelerating  curves. 
Prior  to  1912,  the  jagged  production  line  shows  plainly 
the  periodical,  seasonal  activity,  usually  commencing 
with  July  or  August  of  a  year,  sometimes  a  little  later, 
and  extending  to  the  following  May  or  June.  This  was 
one  of  the  peculiarities  of  the  business  at  that  time. 
Annually,  production  had  to  be  built  up  virtually  from 
the  ground,  only  seriously  to  decrease  some  eight  or 
ten  months  later,  the  crest  of  productivity  usually  com- 
ing in  the  spring  of  the  year.  This  occurred  year  after 
year — an  example  of  an  industry  based  on  repeat  or- 
ders for  few  or  many  pieces  at  periodic  intervals — 
one  of  the  most  difficult  industries  to  conduct  in  an 
efficient  and  economical  manner.  After  July,  1912,  un- 
der the  new-style  management,  while  the  annual  peri- 
ods of  reduced  production  are  still  apparent,  they  are 


niAllT   I.    CAlt  TRODUCTIOX  AND  NUMDKR  OF  WORKERS 


1908-> 


< 1909 


MONTHLY      RECORDS 


THE   RESULTS   GRAPHICALLY   DEPICTED 


149 


by  no  means  as  marked,  nor  do  the  crests  of  produc- 
tion form  such  decided  peaks.  Through  Scientific 
Management,  the  industry  was  converted  into  one  in 
which,  though  the  repeat  orders  for  few  or  many 
pieces  still  remained  at  more  or  less  regular  intervals, 
production  showed  no  such  accentuated  variations  as 
before,  approaching,  in  fact,  a  condition  of  accelerating 
continuous  activity.  The  employment  of  labor  (num- 
ber of  workers  employed)  closely  followed  the  same 
trend.  This  conversion  of  an  industry  from  one  of 
more  or  less  intermittent  operation  to  one  of  much  more 
continuous  activity  is  one  of  the  most  striking  and 
gratifying  of  the  results  attained. 

The  graphs  also  reflect  plainly  the  very  radical 
change  in  product  which  occurred  in  1916.  The  drop 
in  productivity,  reaching  a  low  level  in  July  of  that 
year,  marks  the  introduction  of  a  complete  new  model 
of  automobile,  all  previous  work,  tools  and  product  be- 
ing obsoleted  at  about  that  time.  The  condition  oc- 
curring then,  as  shown  by  the  production  line,  was 
very  similar  to  that  which  periodically  took  place  be- 
fore the  introduction  of  Scientific  Management,  and 
may  be  considered  as  marking  the  wind-up  one  one 
business  and  the  beginning  of  another.  While  the  pro- 
duction of  the  new  model  was  picking  up,  it  is  quite 
evident  that  the  number  of  men  employed  considerably 
exceeded  the  number  which  would  have  been  required 
had  the  product  continued  to  be  similar  to  that  brought 
out  between  July,  1912,  and  July,  1916.  The  regain  in 
productivity  was  rapid  and  marked,  for  at  the  expira- 
tion of  but  six  months  output  was  increasing  at  a  con- 
siderably faster  rate  than  before  the  change  in  model. 
Employment,  likewise,  rapidly  approached  the  indi- 
cated normal  for  the  production,  as  the  workers  quickly 


150 


THE   TAYLOR   SYSTEM 


mastered  the  intricacies  of  the  new  operations.  Scien- 
tific Management  made  possible  the  closing-up  of  a 
well-organized  and  efBciently  conducted  business  and 
the  building-up  of  a  new  and  much  more  extensive  one, 
employing  a  much  larger  force  of  workers,  entailing 
new  methods  and  operations,  intensive  training  of 
workmen  and  a  heavy  investment  in  tools,  fixtures  and 
machines,  all  within  a  period  of  a  few  months.  A  rec- 
ord which  is  quite  unique  in  the  rapidity  with  which 
the  changes  were  made  and  efficiency  of  the  production 
maintained. 

Chart  II  depicts  the  average  hourly  wage  paid  thq 
workers  from  1908  to  1917,  and  here  again  the  steady- 
ing influence  and  regularity  of  increase  is  much  more 
marked  under  Scientific  Management  than  before.  The 
w^orkers  had  benefitted  through  increased  wages  prior 
to  1912,  but  the  mean  increase  had  not  been  marked 
and  the  irregularity  of  the  wage  line  indicates  no 
definiteness  in  trend.  Increases  in  wages  were  ap- 
parently abrupt  in  the  early  days  and  were  frequently 
followed  by  almost  as  great  decreases.  During  the  lat- 
ter part  of  1911  and  the  first  few  months  of  1912  there 
had  been  a  very  decided  increase  in  the  average  wage, 
followed  by  a  quite  appreciable  drop,  which  reached 
the  low  point  in  July,  1912.  After  this  date,  under  Sci- 
entific Management,  the  average  wage  received  by  the 
workers  followed  a  regular  rate  of  increase  very  much 
more  closely,  until  the  advent  of  the  new  variety  of 
product,  July,  1916.  With  the  introduction  of  this 
radically  new  model,  with  new  process  of  manufacture, 
etc.,  a  considerable  drop  in  average  wage  is  indicated. 
This  is  but  natural  and  should  be  anticipated,  for  the 
new  men — ^many  additional  hands  were  taken  on  dur- 
ing this  period — on  new  processes,  etc.,  could  not  be  as 


\ 


CHART  II.     AVKRAGK  IIOUniA'   RATE   OP  PAY 


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MONTHLY      RECORDS 


THE   RESULTS   GRAPHICALLY   DEPICTED 


151 


skillful  as  the  trained  men  working  on  the  production 
of  the  older  and  more  familiar  variety  of  product 
However,  the  drop  in  average  wage  was  of  but  short 
duration,  and  as  the  men  became  skilled  in  their  work 
their  average  wages  increased  rapidly,  and  within  a 
period  of  a  year  were  fully  as  high  as  could  have  been 
expected   and  hoped   for  under   former   conditions. 
Though  there  were  periods  in  which  the  average  wage 
seems  to  have  been  somewhat  abnormal,  and  during  oth- 
ers the  average  wage  received  by  the  workers  was  be- 
low the  mean  values  shown  by  the  smooth  curves,  the 
general  drift  of  the  wage  curves  shows  a  substantial 
and  steadily  accelerated  increase  in  average  wage, 
broken  only  by  the  drop  of  July,  1916.    This  result, 
attained  under  and  by  virtue  of  Scientific  Management, 
is  naturally  that  in  which  the  workers  are  most  inter- 
ested, but  any  such  increase  in  average  wage— an  in- 
crease of  60  per  cent,  in  five  years— would  be  quite 
impossible  of  realization  if  it  were  not  for  the  fact  that 
the  workers  became  more  and  more  efficient  nnder  the 
new  management. 

This  increase  in  the  efficiency  of  the  men  is  depicted 
on  Chart  III,  which  shows  the  decrease  in  the  number 
of  hours  required  for  the  production  of  a  car.  The 
smooth,  broken  line  curves  indicate  the  trend  of  reduc- 
tion in  the  number  of  producing  hours  and  draws  atten- 
tion to  two  important  points:  first,  the  very  marked 
reduction  in  the  number  of  hours  required  to  produce 
a  car  immediately  following  the  introduction  of  Sci- 
entific Management ;  and,  second,  in  the  latter  half  of 
1916  and  the  beginning  of  1917,  the  decreased  relative 
efficiency  of  the  workers,  due  to  the  fact  that  they  had 
not  yet  attained  the  same  degree  of  proficiency  in  opera- 
tions on  the  new  model  car  as  had  been  developed  on 


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THE   RESULTS   GRAPHICALLY   DEPICTED 


153 


the  more  familiar  types  tli rough  1914  and  1915.  This 
decrease  in  efficiency  was  but  temporary,  however,  as 
evidenced  by  the  fact  that  the  broken  line  curve  depict- 
ing the  trend  of  reduction  since  July,  1916,  rapidly 
approaches  the  dotted  line  continuation  of  the  trend 
curve  prior  to  that  date.  Another  interesting  point 
brought  out  is  that  the  various  peaks  on  the  actual  pro- 
ducing-hour  line  invariably  mark  periods  of  reduced 
productivity,  showing  that  the  best  results  are  obtain- 
able when  the  shops  are  busily  engaged  in  production. 
The  smooth  wage  curves  shown  on  Chart  III  are  similar 
to  the  broken  line  w^age  curves  on  Chart  II — the  scale 
differs,  that  is  all — and  it  will  be  observed  that  there  is 
a  strong  resemblance  between  these  curves  and  the 
smooth,  broken  line  producing-hour  curves,  indicating 
that  average  wages  increased  at  very  nearly  the  same 
rate  as  did  the  efficiency  of  the  workers,  measured  by 
the  decrease  in  the  number  of  producing  hours  taken 
to  complete  a  car. 

How  the  organization  can  pay  the  increased  wages 
on  account  of  the  decreased  time  required  for  produc- 
tion is  shown  by  Chart  IV.  This  latter  illustration 
shows  the  general  decrease  in  production  cost  per  car 
made  possible  through  the  increased  efficiency  of  the 
workers  under  the  new  management,  with  its  improved 
methods,  etc.  The  cost  curves  are  not  dissimilar  from 
the  producing-hour  curves,  the  peaks  occurring,  as  be- 
fore, in  periods  of  reduced  productivity.  The  very 
marked  increase  in  cost  of  car  in  1916,  when  all  former 
parts  were  obsoleted  and  a  brand  new  model  con- 
structed, with  new  jigs  and  fixtures,  new  machinery 
and  changed  operations,  is  very  apparent.  This  change 
in  product  represented  a  very  considerable  investment 
on  the  part  of  the  organization,  during  which  there  was 


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THE   RESULTS    GRAPHICALLY   DEPICTED 


155 


no  equivalent  reduction  in  wages,  although,  there  was 
of  necessity  a  reduction  in  the  efficiency  of  the  workers, 
as  reflected  by  the  relatively  slight  drop  in  average 
wage,  on  account  of  the  new  character  of  the  work. 
However,  by  the  end  of  1916,  the  car  cost  had  dropped 
to  that  depicted  by  the  broken  line  cost  curve,  and  by 
April  of  1917  the  production  cost  per  car  was  mate- 
rially reduced,  notwithstanding  the  fact  that  at  the 
same  time  there  had  been  marked  increases  in  average 


wage. 


The  benefits  accruing  to  the  workers  under  Scientific 
Management  are  strikingly  and  concretely  shown  by 
the  accelerating  wage  curve  on  Chart  II.  Average 
wages  have  been  steadily  and  materially  increased. 
This  is  undoubtedly  what  is  most  desired  by  the  work- 
ers, but  it  is  only  possible  of  continuance  when  the 
workers  continue  to  become  more  valuable  to  the  or- 
ganization. The  curve  on  Chart  II  indicates,  then,  not 
only  the  increase  in  average  wage,  but  also  the  in- 
creased value  of  the  workers.  This  increased  value 
may  be  due  to  a  variety  of  reasons :  increased  efficiency, 
greater  knowledge,  etc.  In  fact,  all  the  factors  which 
are  considered  in  figuring  the  increase  in  the  base  rates 
of  workers,  as  explained  in  Chapter  VI,  are  reflected 
by  the  average  wage  curve.  Chart  IV  depicts  the  con- 
crete benefits  realized  by  the  organization  through  the 
introduction  of  Scientific  Management,  and  may  be 
summarized  as  reduced  manufacturing  costs — the  main 
object  of  production  management. 

The  main,  and  usually  the  only,  object  of  manufac- 
turing is  to  make  a  profit,  and  in  order  to  do  so  the 
manufacturer  must  sell  his  product  for  more  than  it 
costs  him  to  build  and  market  it.  That  is,  there  should 
be  a  margin  between  his  production  cost  and  his  selling 


156 


THK  TAYLOE   SYSTEM 


i 


jjiice  sufficient  to  cover  all  selling  expenses,  etc.,  and 
to  leave  a  balance  for  profit.  Quite  obviously,  such 
margin  is  dependent  upon  two  considerations,  or  fac- 
tors, the  production  cost  of  the  product  and  its  selling 
price,  and  of  these  two  factors  only  production  cost  can 
be  affected  by  the  production  management.  Any  re- 
duction in  production  cost — such  as  has  occurred  in  the 
Franklin  plant — is  then  a  direct  "benefit,"  quite  irre- 
spective of  whether  the  manufacturer  succeeds  in  mar- 
keting his  product  so  as  to  show  a  profit  or  not,  inas- 
much as  it  increases  the  margin. 

Eeduction  in  production  cost,  disregarding  the  ex- 
penses of  material  cost  and  burden,  may  be  secured  in 
but  two  ways:  by  a  reduction  in  labor  cost  or  by  an 
increase  in  the  efficiency  of  the  workers.  If  secured 
through  the  latter  method,  it  stamps  the  production 
management  as  efficient  and  the  workers  as  loyal,  pro- 
gressive and  entitled  to  reward  in  the  way  of  increase 
in  wages.  The  only  equitable  increase  in  wages  would 
be  such  that  the  "benefit"  accruing  to  the  worker,  his 
increased  pay,  is  proportional  to  that  enjoyed  by  the 
company  through  the  workers'  industry — i,  e.,  the  total 
benefit  derived  should  be  apportioned  equitably  between 
the  company  and  the  workers  in  direct  proportion  to 
their  respective  investments  in  the  business  of  manu- 
facturing, quite  aside  from  the  question  of  profit  de- 
rived by  the  company  in  marketing  the  product. 

The  investment  made  by  the  company  consists  of  the 
production  cost  of  the  product  (the  sum  of  the  labor 
cost,  material  cost  and  burden),  while  that  made  by 
the  workers  is  the  labor  cost  (the  product  of  the  pro- 
ducing hours  by  the  average  hourly  rate  of  pay).  An 
equitable  division  of  any  benefit  realized  would  then  be 
governed  by  the  ratio  of  the  company's  investnaent  (C). 


THE   RESULTS   GRAPHICALLY   DEPICTED 


157 


to  the  workers'  investment  (L).  A  constancy — over  a 
period  of  years — in  the  value  of  such  ratio,  further- 
more, would  reflect  uniformity  in  the  fairness  of  di- 
vision of  benefit  and  mark  the  management  as  excep- 
tionally efficient — provided,  of  course,  no  unusual  out- 
side influences  affected  the  co^t  of  materials  and  there 
was  no  radical  change  in  product. 

It  is  true  that  three  important  outlays  are  repre- 
sented by  the  company's  investment  while  there  is  but 
one  in  the  workers'  contribution,  but  there  is  normally 
an  intimate  relationship  between  all  of  these  factors. 
The  cost  of  materials  may  vary,  increasing  or  decreas- 
ing the  company's  investment.  This  may  be  partly 
through  manipulation,  but  in  the  long  run  it  is  a  reflec- 
tion of  the  value  of  labor,  as  normal  fluctuations  are 
almost  entirely  the  effect  of  increased  or  decreased  cost 
in  the  handling  of  the  material.  This  is  particularly 
true  in  the  case  of  variations  in  the  average  cost  of  the 
several  staple  materials  entering  into  the  construction 
of  an  automobile.  That  is,  when  the  average  cost  of 
materials  increases,  the  value  of  labor  also  generally 
increases.  Even  in  the  case  of  elevation  of  material 
prices  through  manipulation,  the  value  of  labor  should 
also  increase  to  some  extent,  on  account  of  its  increased 
responsibility  through  working  with  more  costly  ma- 
teriaFs.  Burden  represents  a  cash  investment  and  is 
dependent,  therefore,  upon  the  value  of  money,  as  is 
likewise  the  value  of  labor.  With  the  three  major  com- 
ponents of  the  company's  investment  all  materially 
affected  (under  normal  conditions)  by  the  value  of  la- 
bor, no  very  appreciable  variation  in  the  equitable 
division  of  "benefit"  between  the  company  and  the 
workers  should  take  place,  unless  there  be  a  radical 
change  in  operating  conditions,  such  as  a  very  hea\^ 


i!    > 


!    I 


158 


THE   TAYLOR    SYSTEM 


investment  by  the  company  in  the  way  of  expansion, 
a  radical  change  in  the  product  manufactured,  or  a 
marked  increase  in  the  cost  of  materials,  created  by  an 
unexpected  heavy  foreign  demand  or  intensive  and 
prolonged  manipulation.  The  effect  of  such  radical 
alterations  in  normal  conditions  would  simply  raise  or 
lower  the  value  of  the  "equity  ratio,"  which  would  then 
remain  fairly  constant  while  the  new  conditions  existed. 

There  is  one  other  economic  consideration  which 
deserves  mention  before  investigating  the  position  of 
the  production  management  of  the  H.  H.  Franklin 
Manufacturing  Company  from  the  viewpoint  of  equity 
in  the  division  of  "benefit,"  and  that  is  the  effect  of  an 
increased  investment  on  the  part  of  either  the  company 
or  the  workers.  In  any  cooperative  industry,  such  as 
a  manufacturing  enterprise  conducted  on  equitable 
lines,  an  increase  in  the  investment  of  either  Capital 
or  Labor,  whether  it  be  for  the  purpose  of  increasing 
production,  enlarging  the  field  of  operation  or  tiding 
over  a  critical  period,  will  benefit  the  industry  as  a 
whole — the  party  not  making  the  investment  as  well  as 
the  party  making  it.  The  party  which  does  not  make 
the  investment,  risking  nothing,  is  then  benefited  to  a 
greater  extent  than  the  party  making  the  actual  invest- 
ment. Whenever  the  equity  ratio  C:L  is  increased, 
then,  the  workers  are  benefited  to  a  greater  extent  than 
is  the  manufacturer,  and  when  the  ratio  C:L  is  de- 
creased in  value,  the  manufacturer  derives  the  greater 
benefit. 

Chart  V  illustrates  the  percentages  of  such  monthly 
ratios,  calculated  from  the  actual  values  given  on 
Charts  II,  III  and  IV.  The  individual  monthly  ratios 
from  July,  1912,  to  April,  1916 — a  period  in  which  there 
was  no  radical  change  in  product — differ  but  slightly 


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THE   TAYLOR    SYSTEM 


from  the  100  per  cent,  taken  as  a  basis  of  comparison. 
During  this  period  the  workers  were,  as  a  rule,  favored 
slightly  more  than  the  organization,  but  the  variation, 
one  way  or  the  other,  was  so  slight  that  the  division  of 
the  benefits  between  the  organization  (management) 
and  workers  is  really  remarkable  in  its  uniformity. 
The  fairness  of  the  division  on  the  workers'  side  is  evi- 
denced unquestionably  by  the  freedom  from  all  labor 
trouble  since  the  introduction  of  Scientific  Management 
and  by  the  steady  increase  in  average  wage,  while  on 
the  part  of  the  management  it  is  as  strongly  shown 
by  the  steady  increase  in  volume  of  business.  Con- 
tentment on  the  part  of  the  worker  and  growth  on  the 
part  of  the  industry  could  occur  simultaneously  only  if 
the  benefits  realized  were  equitably  divided. 

In  1916,  however,  it  will  be  seen  that  there  was  a 
very  sharp  and  decided  peak  in  the  "benefit"  line  at 
the  time  of  the  radical  change  in  product,  indicating 
that  the  workers  benefited  far  more  than  did  the  or- 
ganization. This  could  not  be  avoided,  for  while  such 
reorganization  was  being  made  it  would  have  been 
manifestly  unfair  to  reduce  the  wages  paid  to  the  work- 
ers sufficiently  to  enable  the  organization  to  make  the 
extensive  changes  without  a  heavy  investment.  To 
have  so  evaded  this  outlay,  had  it  been  possible,  would 
have  been  a  case  of  exploiting  the  workers  in  the  in- 
terests of  the  management.  This  would  have  been  con- 
trary to  the  principles  of  Scientific  Management  and  to 
justice.  However,  having  made  the  heavy  investment, 
the  organization  was  entitled  to  all  such  benefits  as  it 
could  legitimately  claim.  It  is  interesting  to  note, 
therefore,  that  the  Franklin  Company  did  actually  se- 
cure such  legitimate  benefits,  as  evidenced  by  the  bene- 
fit line  of  Chart  V  falling  below  the  100  per  cent,  equity 


THE    RESULTS   GRAPHICALLY   DEPICTED 


161 


line  after  the  period  of  heavy  investment  in  1916. 

Upon  reimbursement  to  the  organization  for  its 
heavy  cash  investment  entailed  in  the  very  material 
expansion  made  in  1916  by  the  legitimately  increased 
benefits  depicted  by  the  low  value  of  the  benefit  line, 
the  division  of  benefit  again  approaches  an  "equity 
ratio,"  but  one  which,  if  the  expansion  has  been  a  wise 
one,  is  considerably  below  the  former  100  per  cent, 
equity  line.  This  alteration  in  equity  ratio  is  the  result 
of  a  reduced  proportional  investment  on  the  part  of  the 
organization  made  possible  through  increased  manu- 
facturing facilities,  an  increased  output,  and  the  em- 
ployment of  more  workers.  In  other  words,  in  the 
larger  organization  the  workers  control  a  proportion- 
ally increased  interest  in  the  business,  so  that  the 
equity  ratio  C:L  is  reduced. 

One  of  the  strongest  endorsements  of  Taylor  Sys- 
tem in  Franklin  Management  is  that  the  radical  reor- 
ganization of  the  business,  whereby  the  output  of  the 
plant  was  increased  some  threefold,  was  carried  on 
while  and  during  the  recognition  of  the  workers'  indus- 
try in  the  way  of  a  continually  increasing  average 
wage.  Except  for  the  slight  and  temporary  drop  in 
average  wage  coincident  with  the  much  more  marked 
increased  cost  of  production  in  1916,  the  workers  have 
received  higher  and  higher  wages  in  recognition  of 
their  increasing  industry  and  growing  efficiency.  These 
rewards  were  made  possible  even  during  the  period  of 
reorganization  by  the  new  system  of  management,  and 
they  continued  through  the  period  in  which  the  organi- 
zation reaped  the  somewhat  increased  benefits. 

The  five  charts  presented  illustrate  in  a  striking  man- 
ner the  benefits  which  have  accrued  to  both  the  organi- 
zation and  the  workers.    Both  branches  of  the  industry 


162 


THE   TAYLOR   SYSTEM 


have  gained  much  under  the  Taylor  System  as  applied 
to  the  Franklin  shops.  The  benefits  have  been  mutual 
— a  flourishing  and  healthy  industry  has  been  built  up 
on  the  principle  of  justice  and  equity — and  possibly 
one  of  the  most  remarkable  developments  to  this  end 
has  been  the  derivation  of  the  empirical  formula  by 
which  the  hourly  rate  paid  the  workers  is  established. 
When  it  is  remembered  that  the  increased  cost  of  liv- 
ing, the  value  of  greater  and  more  extensive  knowledge 
on  the  part  of  the  worker,  his  loyalty,  as  evidenced  by 
his  years  of.  continuous  service,  his  efficiency,  recog- 
nized by  the  payment  of  premiums,  penalties  imposed 
for  spoiled  work,  absences  and  tardiness  in  reporting 
for  work,  etc.,  etc.,  have  all  been  taken  into  considera- 
tion and  valued  in  establishing  the  base  rate  of  pay  for 
each  worker,  then  some  idea  of  the  efficiency  and  re- 
markable resourcefulness  of  the  Taylor  System  in 
Franklin  Management  may  be  realized. 

Doctor  Taylor's  four  fundamental  principles  of 
Scientific  Management  have  really  been  applied 
throughout  the  whole  Franklin  organization.  The  sci- 
ence is  most  highly  developed  in  the  factory,  as  is 
naturally  the  principle  of  training  and  selection  of 
workmen,  but  the  cooperative  features  and  the  equitable 
division  of  work  and  responsibility,  without  which 
neither  the  science  nor  trained  men  alone  could  accom- 
plish the  desired  results,  are  found  in  all  departments 
of  the  organization,  from  the  highest  to  the  lowest.  No 
small  credit  for  the  wonderful  results  obtained  is  due 
to  the  hearty  cooperation  and  loyal  backing  of  the  ex- 
ecutive heads,  the  unqualified  support  of  the  financial 
division  of  the  Company,  the  cooperation  of  the  efficient 
sales  department  and  the  splendid  spirit  which  per- 
meates all  branches. 


APPENDIXES 


Wage  Bates  in  the  Franklin  Shops 


PAGE 

167 


Examples  in  Application  of  Scientific  LIanage- 

MENX 183 


Appendix  I 
WAGE  RATES   IN   THE   FRANKLIN   SHOPS 

PAGE 

Fundamental  Base  Rate 169 

Relative  Cost  of  Living 172 

Comparative  Statement  of  Cost 174 

Recalculation  of  a  Worker's  Rating 176 

Statement  by  Employees 180 


I 


M 


FUNDAMENTAL  BASE  RATE 


Process  Class  of 
Work 

A    Spindle  1 

Mach. 


B    Lathe 


2 
1 


2 
3 


C    Milling  1 

Mach.  2 , 

D   Automatics    a . 


Semi-  b . 

Automatics 
E    Hand  Screw  1. 

2. 
F    Precision        1 . 

Grinding 


2. 


3. 


G   Gear 
Cutters 


H   Miscella- 
neous 


2. 

3 

4. 

1. 

2. 
3. 


4. 
5. 


Type  and  Make 
of  Machine 

DriUs 

Single  gang, 

Multiple,  radial 

Tapping  machine 

Engine  Lathe 

Bore,  turn,  face, 

thread  cutting 

Lo-Swing 

Turret 

Fox  or  Gisholt 

Jones  and  Lamson 

Power 

Hand 

BAR  WORK 

1 .  Cleveland 

2.  Acme 

3.  Gridley 

4 .  Brown  &  Sharpe 
Potter  &  Johnson 
Faye 

Warner  &  Swasey 

Pratt  &  Whitney 

EXTERNAL 

Landis 

Norton 

Brown  &  Sharpe 

Universal 

INTERNAL 

Heald 

Bryant 

SURFACE 

Heald 

Blanchard 

Diamond 

Hobbers 

Barber  &  Coleman 

Gould  &  Eberhart 

Shapers 

Fellows 

Millers 

Brown  &  Sharpe 

Generators 

Gleason 

Planer  or 

Shaper 

Profiler 

Boring  Mills 

a.  Horizontal 

b.  Vertical 
Punch  Press 
Use  Micrometers 
and  read  blue  prints 

169 


Process        Total  Base  Rate 
Credits  {N)  Credits  1905  {B) 


H 


H 


K 
H 

H 


H 


H 


IH 


IH 


.20 


.25 


IH 

.25 

.25 

H 

.20 

.25 


.225 
.225 


.25 
.25 
.25 

.25 


.25 
.225 


I 


11 


fif 


i'ii 


170 


WAGE   RATES   IN   THE   FRANKLIN    SHOPS 


Process  Class  of  Work 


A    Master  Trimmer. 

Design  and  pattern  drafting 
Pattern  making  and  lay-out 
Cut  and  make  up  fittings  for 

experimental  jobs 
Repair  work,  bodies,  tops,  slip 

covers 
Requires  all  around  man 

B    Stock  Cutter. 

Inspect  and  select  stock 

Lay-out  for  economy 

Accuracy — No  spoilage 

Speed — Fast  work 
Leather  cutter 
Electric  machine  cutter 
Buckram  cutter 


C    Body  Trimmer. 

Closed  car  trim 

Open  body  trim 

Cushion  build     • 
stuff  bv  hand 

Cushion  build 
stuflf  by  press 
Door  trim 
Sewing  machine 
Paste 
Inspect  and  select  stock 

D  Seat  Cover. 

Fit  and  adjust 
Sewing  machine 
Lay-out  and  cut  stock 

Seat  cover  maker 

Seat  cover  helper 
Sewing  machine 

E    Top  Maker. 

Covering  and  fitting  curtains, 

etc. 
Setting  up  bows  and  covering 

bows 
Sewing  machine 
Lay-out  and  cut  stock 

Build  top  complete 

Cover  bows  and  set-up 
Sewing  Machine 


Process 
Credits  (AT) 


Total 
Credits 


Base  Rate 
1905  {B) 


I 


Ya 


Va 
H 

H 


H 


H 


H 


(1) 


(1) 


(1) 


(1) 


.26 


(1) 


.26 
.26 
.26 


.30 
.26 

.2.5 

.22 

.20 
.19 
.20 


.258 

.22 

.19 


.26 
.19 
.19 


FUNDAMENTAL  BASE  RATE 


171 


Work  and  Department. 
(No  Process  Credits  Yet  Established.) 


Case  Hardening. 
Heat  treaters 
Brazer 
General  labor 

Tool  Department. 
Toolmakers 
Oilers  and  beltmen 

Wood  Shop. 
Bench  men 
Machine  men 

Paint  Shop. 
Air  brush 
Finishers 
Putty  and  sand 
Stripers 
Paint  mixers 
Monogram  men 

Final  Assembly. 
Sub-assembly 

Pattern. 
Metal 
Wood 

Repair  Department. 
Repairmen 
Wash  room  attendants 

Heat  and  Power. 
Day  fireman 
Night  fireman 

Inspection.  , 

Finished  parts 
Raw  material 

Millwright. 
Millwrights 
Millwrights'  helpers 
Electricians 
Yard  men 
Gate  men 
Night  watchmen 

Stores. 

Raw  stock 
Finished  stock 

First  Aid. 
Janitors 
Plumbers 

Stock  Movers. 
Move  men 
Elevator  men 


Base  Rate 
1905  (B) 

.225 
.245 
.175 

.325 
.20 

.22 
.24 

.235 

.26 

.15 

.25 

.20 

.30 

.23 

.275 
.30 

.275 
.21 

.165 
.20 

.27 

.275 

.235 

.185 

.25 

.15 

.15 

.125 

.175 
.175 

.15 
.20 

.165 
.15 


Mi 


J 


,1 

!  If 


EELATIVE  COST  OF  LIVING 

In  order  to  determine  the  relative  cost  of  living 
since  1905.  the  four  principal  elements — food,  clothing, 
fuel,  and  shelter — were  taken  into  consideration. 

The  territory  involved  was  the  locality  contiguous 
to  the  plant  of  the  H.  H.  Franklin  Manufacturing  Co., 
Syracuse,  N.  Y.,  in  which  territory  the  larger  part  of 
the  workers  resided. 

After  considerable  study  and  tabulation  the  aver- 
age workingman's.  family  was  taken  as  consisting  of 
himself,  his  wife,  and  three  children — two  boys,  aged 
fifteen  and  nine  respectively,  and  one  girl,  aged 
seven. 

The  menu  of  a  large  number  of  families  was  aver- 
aged for  three  meals  each  day  at  four  periods  of  the 
year — spring,  summer,  fall,  and  winter. 

A  study  was  made  of  the  clothing  each  of  these  fam- 
ilies desired  for  proper  warmth,  protection,  and  con- 
sistent appearance. 

The  fuel  considerations  were  those  for  warming  the 
dwelling  in  which  they  lived  and  also  for  cooking  their 
food. 

The  typical  home  was  considered,  its  assessed  valua- 
tion, and  the  annual  taxation,  assuming  that  the  work- 
ingman  owns  his  own  home.  This  taxation  was  consid- 
ered as  the  index  of  rentals. 

The  investigations  were  made  to  a  great  degree  of 
thoroughness  and  accuracy.  All  possible  factors  af- 
fecting the  cost  of  living  were  investigated,  the  fol- 
lowing summary  was  developed,  and  the  percentage  of 
increase  in  costs  for  the  years  1915  and  1916  over  that 
of  1905  was  determined. 

172 


^ 


RELATIVE    COST   OF   LIVING 


173 


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174 


WAGE   RATES   IN   THE   FRANKLIN   SHOPS 


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RELATIVE   COST  OF  LIVING 


175 


From  this  table  it  may  be  seen  that  the  increase  in 
the  cost  of  living  since  1905  up  to  and  including  1915, 
measured  on  the  basis  of  the  principal  requirements 
of  the  typical  family,  was  29.8  per  cent.,  and  that  since 
1905  to  1916  was  46.8  per  cent. 


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RECALCULATION    OF   A    WORKER'S  RATING 

In  order  to  exemplify  the  manner  in  which  a  work- 
er's rating  is  recalculated  four  times  a  year,  a  typical 
case,  that  of  Mr.  H.  B.,  Clock  No.  508,  in  the  Machine 
Shop  Department,  is  given. 

On  September  18,  1916,  the  Employment  Superin- 
tendent sent  to  Mr.  H.  B.  the  following  letter : 

"We  are  about  to  recalculate  your  rating.  In  check- 
ing your  record  we  find  it  differs  from  your  first  rat- 
ing as  follows: 


Fac- 
tor 


Explanation 


e 

Pa. 

Pd. 

PI. 

S 

M 

y 

C 


Per  cent,  of 


Your 

Previoua 

Rating 


Your  Record 

for  This 
Last  Period 


Yours 


Premium  earnings 

Absence 

Day  work 

Suspended  for  no  work. . 

Spoilage 

No.  of  major  proc^ses. . . 

Years  of  service 

Conduct  and  cooperation 


19.4 

5.8 

56 


Std. 


33.3 
0 
10 


Yours 


11 
2 
54 


Std. 


33.3 
0 
10 


0 

0 

0 

JL\M 

0 

0 

0 

0 

0 

2 

2 

2 

2 

4.5 

5 

4.75 

5 

1 

1 

1 

1 

176 


RECALCULATION    OF   A   WORKEr's   RATING  177 

"This  decrease  in  premium  earnings  and  decrease  in 
day  work  offsets  your  decrease  in  absences  and  your 
increase  in  years  of  service,  and  will  tend  to  lower 
your  rate  proportionately. 

"However,  there  will  be  no  change  in  your  rate  until 
you  have  advised  us  of  the  causes  which  have  made 
this  change  in  your  record  and  we  have  made  com- 
plete investigation  of  the  facts. 

"Please  gather  all  data  you  have  to  show  concern- 
ing the  conditions  which  have  affected  your  record  and 
arrange  to  see  me  on  September  20,  at  9 :00  a.  m." 

On  the  day  specified  Mr.  H.  B.,  No.  508,  operating  a 
surface  grinding  machine,  reported : 

"The  Time  Study  Department  set  a  rate  of  120 
pieces  per  hour  on  my  machine  and  it  is  the  maximum 
capacity.  It  is  impossible  to  run  the  machine  at  a 
greater  capacity,  as  it  stops  when  this  is  done.  The 
belt  is  now  so  tight  that  it  pulls  apart  at  the  lacing. 
For  another  thing,  the  Inspector  that  worked  in  con- 
junction with  the  Time  Study  Department  did  not  show 
me  the  right  way  to  do  the  job,  consequently  a  major- 
ity of  the  pieces  have  been  returned  to  me  for  correc- 
tion. In  order  to  do  the  extra  work  on  the  pieces  I 
have  to  use  more  time  and  feel  that  the  present  rate 
should  be  reset. 

"My  job  card  does  not  show  when  I  am  on  premium 
work  and  when  not.  Even  so,  I  could  not  make  pre- 
mium speed,  as  the  machine  is  now  loaded  to  its  full 
capacity.  Another  thing,  delay  is  caused  by  poor  fix- 
tures. The  magnetic  chuck  allows  the  part  to  whirl 
around  and  cut  the  wheel  instead  of  the  wheel  cutting 
the  part.  This  causes  the  redressing  of  the  wheel, 
which  takes  from  five  to  seven  minutes  each  time.    A 


fi 


il 


178  WAGE   BATES  IN   THE   FRANKLIN   SHOPS 

new  fixture  which  increased  the  output  wonderfully 
was  furnished,  but  the  work  it  turned  out  was  not  up 
to  the  Inspector's  qualifications  and  I  had  to  discard  it. 
Another  trouble  has  been  lack  of  M-24  grinding 
wheels     I  have  had  to  get  along  as  best  I  could  with 
two  wheels  for  two  months.    The  Assistant  Foreman 
on  that  floor  tried  to  locate  some  in  the  Stores  Stoc-k 
Room  but  was  unable  to  find  any."    [At  this  point  the 
Employment    Superintendent    sent   a   man    into    the 
btores  Stock  Boom,  who  found  seventeen  new  M-"* 
wheels  which  had  been  received  three  months  earlier"  1 

Furthermore"  [Mr.  B.  continued],  "my  machine  needs 
a  thorough  overhauling.  But  it  is  impossible  to  do 
Uus,  as  the  machine  is  being  worked  night  and  day 
Outside  of  the  Time  Study  being  wrong.'^my  greatest 
trouble  IS  m  getting  supplies  and  not  finding  out 
whether  they  are  available  or  not  and,  if  so,  where 
they  are  located." 

The  Employment  Superintendent  informed  Mr   H 
B.  that  he  would  carefully  check  these  causes  of  delay 
and  re-rate  him  on  the  result  of  his  investigation.    In 
accordance  with  that  promise  he  made  a  number  of 
investigations  and  found  that  the  claims  made  by  Mr 
±i.  B   were  substantially  correct.    The  M-24  grindin.^ 
wheels  had  been  replaced  by  wheels  marked  CM-H 
and  a  new  clerk  did  not  know  of  the  change.    On  Octo- 
ber 8,  therefore,  the  Employment  Superintendent  again 
summoned  Mr.  H.  B.  and  was  informed  that  repairs 
were  being  made  on  the  machine  in  question.     The 

Employment   Superintendent   closed   the  matter  bv 
stating:  •' 

"It  is  hard  to  estimate  your  rate  adjustment,  but 
since  you  did  not  report  any  trouble  prior  to  our  for- 


■j 


BECALCULATION    OF   A   WORKER  S   RATING 


179 


mer  interview  we  are  going  to  hold  your  rate  at  37 
cents  up  to  December  1.  You  will  have  until  then  to 
make  your  record.  The  conditions  are  now  very  good, 
and  you  think  your  chances  are  better.  If  you  are  sat- 
isfied, we  will  keep  your  present  rate  until  December  1. 
In  the  meantime,  if  anything  should  occur  to  hurt 
your  rate  you  must  notify  your  Foreman  at  once  and 
also  let  me  know.  The  sooner  it  is  corrected  the  bet- 
ter." 


1 


i 


I 


i^ 


STATEMENTS   BY   EMPLOYEES 

To  substantiate  the  arguments  that  the  workers  are 
thoroughly  in  accord  with  the  method  of  payment  that 
the  Franklin  Company  has  effected,  the  Employment 
Superintendent  on  November  1,  1916,  asked  some  of 
them  the  question,  "What  changes  in  your  habits,  mode 
of  hvmg,  etc.,  have  occurred  since  you  have  been  mas- 
ter of  your  own  pay?"  The  replies  were  practically 
similar  in  all  cases.  For  brevity,  two  of  the  replies 
only  have  been  settled  as  typical  and  are  given  here- 
with. 

Mr.  K.,  No.  532,  stated  as  follows : 

"(1)  Health  :  Have  lost  a  little  in  weight,  but  you 
know  my  hay-fever  pulls  me  down  every  year  from 
August  to  October.  However,  outside  of  that,  I  am 
feeling  fine  and  am  gaining  back  my  weight. 

(2)  Hygiene  :    More  careful  about  my  personal  care. 

(3)  Habits  :  I  think  much  more  than  I  used  to  about 
keeping  physically  fit  for  the  job. 

(4)  Food  :  Although  my  grocery  bills  are  about  the 
same  as  before,  we  have  more  luxuries  and  wider  vari- 
ety of  things  to  eat.  Sometimes  if  company  comes  in, 
we  get  some  ice-cream,  never  used  to  feel  we  could 
be  so  hospitable. 

(5)  Clothes:  No!  Haven't  gone  in  for  any  yet, 
but  I  am  going  to  get  some  new  things.  I  want  to 
know  I  can  pay  cash  for  them.  My  wife  has  just 
bought  some  new  things. 

180 


statements  by  employees 


181 


(6)  Saving:  My  little  old  bank  account  is  growing 
and  it's  fun  to  watch  it.  We  think  we  are  getting  some- 
where now. 

(7)  Pleasure:  Bought  a  new  piano,  getting  that 
paid  for  fast. 

(8)  Interest  in  Work  :  It's  a  real  pleasure  to  work, 
it's  fun.  We  think  more  about  our  work.  We  get 
on  the  job  a  few  minutes  early,  we  stick  until  the  horn 
blows,  we  used  to  take  time  off  now  and  then,  although 
never  lost  much,  but  now  we  think  twice.  Had  a 
chance  to  work  on  the  polls,  but  passed  it  up  because 
didn't  want  to  hurt  my  efficiency  in  any  way.  There 
was  a  'good'  piece  of  change  in  it,  too!" 

Mr.  B.,  No.  533,  made  the  following  statement: 
"(1)  Health:    I  have  increased  a  little  in  weight; 
I  have  felt  better  in  the  last  six  months  than  ever  be- 
fore. 

(2)  Hygiene:  My  wife  needed  dental  work,  had 
been  put  off  because  of  the  expense,  she  had  it  done 
lately.  I  paid  half  down  in  cash  and  could  have  paid 
it  all;  you  know  what  dentists'  bills  are. 

(3)  Habits  :  I'm  more  regular  in  my  hours  of  sleep. 
Before  when  my  wife  and  I  went  out,  neither  one  of  us 
thought  so  much  about  the  time  we  turned  in;  now 
she  says,  come  along — ^you  know  you  want  to  keep  fit 
for  tomorrow,  and  I  find  I  am  more  willing  to  listen. 

(4)  Food:  When  we  worked  overtime  before,  we 
used  to  go  over  to  the  saloon,  get  a  beer  and  a  sand- 
wich, come  back,  feeling  punk ;  now  we  go  to  the  lunch 
room,  get  some  steak,  etc.,  price  15  to  20  cents,  cut 
out  the  beer  and  come  back  feeling  fine.  At  home, 
also,  we  have  more  luxuries. 

(5)  Clothes:  I  haven't  put  anything  extra  into 
clothes  so  far,  but  I'm  not  keen  for  a  lot  of  swell  duds ; 


iJ 


182 


WAGE   RATES   IN    THE    FRANKLIN    SHOPS 


I  like  to  see  my  wife  well  dressed  and  she  has  had  a 
new  coat  this  fall. 

(6)  Saving:  I  bought  an  endowment  policy  re- 
cently; heretofore  I  never  thought  I  could  save  it, 
now,  although  it  costs  me  at  my  age  $22  for  a  quar- 
ter, Pm  going  to  be  prepared  for  my  later  days.  When 
I  used  to  go  out  with  only  three  or  four  dollars  in  my 
pocket  and  blow  it  all  because  it  wasn't  much ;  now  I 
spend  only  what  will  carry  us  through.  When  you 
have  got  $50  you  feel  like  making  it  $100. 

(7)  Pleasure:  We  seem  to  get  more"  pleasure  out 
of  life,  not  that  we  are  blowing  any  money  foolishly, 
but  I  mean  we  get  more  enjoyment  out  of  being  alive. 

(8)  Interest  in  Work,  Attendance,  etc.:  It 
seems  more  like  a  game  than  work.  We  took  you  at 
your  word  and  we  have  gone  after  this  for  all  if s 
worth.  We  are  not  suffering  any,  nor  do  we  find  any 
breach  of  our  confidence  in  you." 

Mr.  H. :  Are  you  willing  that  I  report  these  state- 
ments to  the  Production  Manager! 

Mr.  B.:  Yes!  I  am!  Pm  willing  he  should  know 
about  them,  for  I'm  certainly  satisfied  to  have  a  hand 
in  making  my  own  rate  of  pay. 


Appendix  II 

EXAMPLES  IN  APPLICATION  OF  SCIENTIFIC 

MANAGEMENT 

PAGE 

Repair  Shop 190 

The  Small  Parts  Factory 199 

Plant  with  Uniform  Manufacture 208 


I 


ii 


EXAMPLES  IN  APPLICATION  OF  SCIENTIFIC 

MANAGEMENT 

Three  main  groups  of  manufacturing  activity  for 
which  methods  of  Scientific  Management  have  proved 
highly  efficient  may  be  classified  as  Eepair  Shops, 
Small  Parts  Factories  and  Plants  with  Uniform  Manu- 
facture. Each  one  of  these  mechanical  enterprises 
offers  distinct  possibilities  of  installing  the  Taylor 
principles  —  differing  somewhat  in  application,  it  is 
true,  but  nevertheless  the  four  fundamental  principles 
expounded  by  Doctor  Taylor. 

Keferring  to  the  three  broad  classes  of  mechanical 
endeavor  as:  Enterprise  No.  1 — Repair  Shop;  Enter- 
prise No.  2 — The  Small  Parts  Factory;  and  Enter- 
prise No.  3 — Plant  with  Uniform  Manufacture;  the 
scope  of  each  will  be  briefly  outlined  before  describing 
the  system  of  Scientific  Management  best  suited  to  its 
individual  requirements. 

Enterprise  No.  1 — Repair  Shop 

Chiefly  for  a  "one  line"  article,  such  as  the  locomo- 
tive, car,  or  automobile,  but  which  can  be  adapted  with 
local  modifications  to  any  "jobshop"  or  small  miscel- 
laneous manufactory. 

The  fundamentals  indicating  this  type  of  management 
are :  Non-repeating  orders  on  which  a  limited  number 
of  men  broadly  trained  must  do  a  variety  of  things; 
fixed  equipment  is  used  intermittently;  time  too  lim- 

185 


H 


I 


186 


EXAMPLES   OF   SCIENTIFIC    MANAGEMENT 


ited  or  cost  excessive  for  pre-planning;  standards  of 
a  very  limited  kind. 

Enterprise  No.  2— The  Small  Parts  Factory 

* 

Manufacturing  staple  articles  for  demand  stock ;  the 
parts  not  gathered  together  in  complicated  assemblies 
or  related  previous  to  shipment. 

The  fundamentals  indicating  this  type  of  manage- 
ment are:  Kepeat  orders  of  nearly  uniform  size,  but 
active  at  irregular  intervals  of  time,  upon  which  (as 
in  Enterprise  No.  1)  a  limited  number  of  men  must 
do  a  large  variety  of  things;  fixed  equipment  more 
uniformly  burdened  than  in  Enterprise  No.  1,  but  still 
much  of  it  inactive  from  time  to  time.  Due  to  orders 
repeating,  pre-planning  can  be  somewhat  highly  devel- 
oped and  such  costs  can  be  absorbed  on  subsequent 
orders.  A  large  percentage  of  equipment  and  activ- 
ities can  be  standardized. 

Enterprise  No.  3 — Plant  with  Uniform 

Manufacture 

This  can  be  typified  by  the  continuous  reproduction 
of  staple  articles  in  large  quantities— the  motor  car, 
typesetting  machines,  typewriters,  etc.  The  articles 
to  consist  of  complicated  assemblies  made  of  a  large 
variety  of  parts.  Orders  develop  into  pre-planned 
schedules  which  are  practically  recurring  at  uniform 
time  intervals.  Many  men  are  required,  each  operat- 
ing steadily  on  a  small  element  of  the  work;  fixed 
equipment  is  uniformly  burdened;  standards  com- 
pletely developed  for  all  equipment  and  activities.  The 
chief  task  in  the  management  of  this  enterprise  is  that 
of  co-ordination  of  a  complex  product. 


examples  of  scientific  management 


187 


Aiiy  one  or  all  of  the  above  enterprises  may  be  in- 
cluded in  the  activities  of  one  company. 

To  prevent  misconception  of  some  words  which  will 
be  repeatedly  used  in  the  continuation  of  this  subject, 
we  will  standardize  them  by  definition. 

CONTKOL — To  cause  all  work  elements  to  follow 
out  a  prescribed  plan  of  action. 

ROUTING— To  plan  "where,"  "how,"  and  "by 
whom"  and  in  what  standard  time  work  shall  be  done. 

SCHEDULING— To  plan  amount  of  work  and  when 
each  element  shall  start. 

DESPATCH— To  meet  the  conditions  of  control  by 
applying  schedules  to  routing. 

Control  is  entirely  executive. 

Despatching  is  executive,  but  subordinate  to  control. 

Routing  and  scheduling  are  planning,  but  subordi- 
nate to  control. 

The  persons  in  control  are  the  general  manager, 
works  manager,  production  manager,  superintendent, 
or  other  persons  of  similar  executive  position. 

The  routing  division  will  contain  those  persons  who 
analyze  facilities  for  doing  work,  and  who  by  studying 
the  work  to  be  done,  plan  for  and  locate  all  machines, 
tools,  and  fixtures.  They  will  prescribe  the  path  of 
the  work  over  this  equipment.  They  will  specify  the 
operation  to  be  performed  and  the  standard  time  in 
which  to  perform  each  operation.  They  will  deter- 
mine and  establish  all  standards  for  machines  and 
shop  methods. 

The  schedules  division  will  contain  those  persons 
who  plan  for  the  quantity  and  rate  of  output  for  the 
product.  They  will  specify  the  date  to  start  each  unit 
of  work  at  each  station  on  the  route  as  prescribed  by 
the  routing  division.    The  standard  time  required  for 


H 


m 


'.i 


188 


EXAMPLES   OF  SCIENTIFIC   MANAGEMENT 


u 


1 


elemental  work  at  each  station  having  been  established 
by  the  routing  division  it  is  therefore  needless  to  sched- 
ule a  date  to  finish  if  a  standard  allowance  time  for 
movement  of  work  between  operations  as  provided  has 
been  established. 

The  despatch  division  will  contain  all  persons  whose 
duty  it  is  to  see  that  orders  are  issued,  materials  se- 
cured, tools  provided,  and  all  movements  made  which 
will  cause  the  schedules  to  be  carried  out.  This  will 
involve  those  who  prepare  Control  Boards,  route 
sheets,  assembly  charts,  job  cards,  stores  issues,  tick- 
lers, and  all  similar  standard  forms,  or  paper.  It  will 
involve  also  the  executives  in  direct  charge  of  the 
materials,  men  and  machines,  as  storekeepers,  fore- 
men, or  bosses,  inspectors,  millwrights,  transportation 
men  and  employees. 

The  above  classification  of  duties  differs  in  nearly 
every  industry^  applying  the  Taylor  principles  of  Sci- 
entific Management,  and  yet  the  results  obtained  in 
each  uphold  conclusively  the  value  of  these  ideals. 
This  fact  alone  should  convince  those  who  are  inter- 
ested that  Scientific  Management  is  not  a  "ready-to- 
wear"  garment,  but  rather  a  fine  system  of  "fitting" 
by  which  industries  can  be  greatly  improved  in  conduct 
as  well  as  in  appearance,  yet  retain  their  individuality. 
Just  as  a  specially  designed  and  fitted  garment  will 
reflect  the  ability  of  its  tailor,  so  will  the  result  of  any 
application  of  Scientific  Management  reflect  the  ability 
of  the  person  or  persons  chiefly  responsible  for  its 
installation  and  conduct. 

In  the  detailed  statement  of  methods  which  follow 
we  are  presenting  specific  examples  chiefly  useful  to 
illustrate  the  application  of  the  Taylor  principles  of 
Scientific  Management  to  the  three  broad  classes  of 


EXAMPLES   OF   SCIENTIFIC    MANAGEMENT 


189 


enterprises  mentioned  previously — the  repair  shop,  the 
small  parts  factory,  and  the  plant  with  uniform  manu- 
facture. 

The  preparation  of  the  organization  and  men  and 
the  establishment  of  essential  shop  practices  will  not 
be  treated  separately,  but  can  be  appreciated  from 
these  examples  of  actual  practice. 


,ii 


i 


lii 


ENTERPRISE  NO.  1— THE  REPAIR  SHOP 

The  conditions  in  this  shop  previous  to  the  installa- 
tion of  Scientific  Management  were  as  follows:  The 
superintendent  received  orders  from  customers,  either 
by  communication  or  in  person.  The  job  was  stud- 
ied more  or  less  thoroughly  by  the  superintendent  and 
shop  foreman,  who  furnished  an  estimate  of  total  cost 
and  time  of  delivery  of  the  finished  order.  They  then 
endeavored  to  fulfill  the  conditions  of  their  estimate. 

The  capabilities  of  the  various  workers,  or  the  ac- 
cessibility of  materials  and  tools  for  a  given  job  were 
known  only  in  a  general  way.  The  combinations  of 
elemental  operations  in  each  job  usually  varied  from 
any  others,  although  the  elements  were  frequently  sim- 
ilar or  exactly  the  same.  As  no  detail  records  of  ele- 
mental operations  were  maintained,  each  new  job  re- 
quired the  personal  attention  of  these  head  men  to 
estimate  the  "over-all"  cost  and  times.  It  then  became 
their  duty  to  give  by  word  of  mouth  detailed  instruc- 
tions to  their  workers  which  would  cause  the  result 
to  coincide  with  the  estimates  given  sometimes  weeks 
before.  The  superintendent  and  foremen  were  prac- 
tically walking  encyclopedias  as  well  as  estimators, 
employers,  instructors,  disciplinarians  and  a  thousand 
and  one  things  which  a  supervisor  is  expected  to  be. 
Under  the  sightest  pressure  of  work  yet  to  be  done, 
the  estimates  were  hurriedly  made,  and  usually  failed 
by  a  large  percentage.    Customers'  complaints  were 

190 


THE   REPAIR   SHOP 


191 


common.  Each  complaint,  however,  received  immedi- 
ate attention  by  a  rearrangement  of  the  workers  so 
as  to  favor  the  latest  complainant. 

Under  this  condition  a  large  number  of  jobs  would 
be  in  a  partially  completed  state  at  the  date  of  prom- 
ised delivery.  Once  the  job  was  started  and  partially 
completed,  since  there  was  no  record  of  how  much  had 
been  done  except  in  the  mind  of  the  worker,  if  such 
work  stopped  and  was  again  started  it  required  an- 
other "over-all"  estimate  with  even  less  time  than  that 
allowed  for  the  first  to  tell  the  customer  when  the  job 
would  be  completed.  These  answers  were  frequently 
given  to  the  customer  from  the  time  a  telephone  re- 
ceiver was  taken  down  until  it  was  hung  up  again. 
Several  estimates  given  under  this  pressure  were  later 
tested  as  to  their  accuracy,  from  a  study  of  the  aver- 
age times  taken  to  do  the  work  and  the  allowances 
made  for  interference  with  the  work  due  to  lack  of 
materials  and  tools,  the  actual  average  time  required 
to  prepare  these  estimates  was  from  two  to  three  hours 
with  the  estimate  still  an  approximation. 

The  shop  charge  per  hour  was  a  flat  rate  to  all  cus- 
tomers regardless  of  the  training  or  ability  of  the  work- 
ers on  the  job.  The  total  labor  billings  for  a  month 
were  frequently  less  than  the  labor  cost.  The  differ- 
ence was  charged  into  the  overhead  expense.  It  is 
obvious  that  the  workers'  wages  were  seldom  increased. 

At  times  the  shop  would  be  full  to  overflowing  with 
work  and  at  other  times  very  scarce  of  work,  with  a 
consequent  extreme  variation  of  the  number  of  men 
employed,  so  that  they  were  suspended  and  again  em- 
ployed without  notice.  The  cause  of  this  variation 
was  chiefly  the  acceptance  by  the  superintendent  of 
any  work  which  came  his  way,  and  promised  dates 

14 


192 


EXAMPLES  OF  SCIENTIFIC   MANAGEMENT 


of  deliveries  arbitrarily  given,  usually  according  to 
the  customer's  wishes  rather  than  in  a  time  in  which 
the  work  could  be  actually  accomplished.  Good  work- 
men soon  became  scarce,  and  even  the  untrained  and 
poor  w^orkers  were  irregular  in  attendance  and  care- 
less in  their  work.  The  final  results  of  the  job  were 
high  charges  for  poor  service,  usually  overdue  in  de- 
livery. 

The  method  planned  to  overcome  this  condition  will 
indicate  many  other  weaknesses  which  need  not  be  here 
related. 

THE     REORGANIZATION 

The  first  change  was  made  in  the  supervising  meth- 
ods for  the  shop.  The  superintendent  was  freed  from 
a  great  amount  of  clerical  duty  which  was  transferred 
to  more  efficient  yet  less  costly  assistants.  This  freed 
the  superintendent  for  a  broader  view  of  his  problem 
and  enabled  him  to  give  intelligent  action  upon  esti- 
mates. 

The  different  classes  of  work  which  could  be  done 
in  this  shop  were  then  studied,  grouped  according  to  a 
chart  showing  grouping  of  men  according  to  their  abil- 
ity to  perform  classes  of  work  in  the  shop,  and  stand- 
ardized. The  arrangement  of  the  classes  of  work  was 
in  the  order  of  the  ability  and  training  of  the  workers, 
i,e,,  any  worker  in  Class  A  could  do  work  in  any  class 
below  him,  and  so  on  down  the  list.  This  being  stand- 
ardized, the  superintendent,  foreman,  or  despatch  boy 
could  give  out  work  of  different  classes  to  men  out 
of  the  classes  with  equal  facility.  In  case  it  was 
deemed  advisable  to  give  a  man  routed  in  a  lower 
class  of  work  a  job  routed  to  a  higher  class — i.e.,  a 
workman  in  G  transferred  to  Z>,  it  was  necessary  for 


THE   REPAIR   SHOP 


193 


the  superintendent  or  the  foreman  to  approve  of  such 
transference  for  the  one  job  only.  If  the  upper  trans- 
ference of  such  a  worker  caused  him  to  work  in  a 
class  higher  than  his  own  more  that  50  per  cent,  of 
the  time,  he  was  transferred  to  the  upper  class  perma- 
nently. 

Workers  were  then  studied  and  encouraged  to  select 
the  highest  possible  class  in  which  they  were  reason- 
ably sure  that  they  would  not  receive  criticism  for, 
lack  of  ability.  They  were  then  arranged  in  each  class 
in  the  order  of  their  ability  and  were  rated  and  paid 
according  to  the  positions  which  they  held  from  the 
highest  to  the  lowest  in  the  class,  and  from  the  highest 
to  the  lowest  class. 

In  writing  an  order  for  a  job,  the  superintendent 
classified  his  order  according  to  these  classes,  and  the 
order  was  immediately  delivered  to  the  planning  room. 

The  order  should  show  the  customer's  name  and 
order  number,  the  estimated  date  of  delivery  of  the 
finished  job  and  a  statement  in  paragraphs  with  sym- 
bols of  each  element  of  the  job  according  to  the  stand- 
ard classes.  The  estimated  operation  time  required 
to  perform  each  of  the  elemental  operations,  with  an  al- 
lowance time  added  to  each  of  the  operation  times, 
should  be  noted  on  the  margin  of  the  order,  this  allow- 
ance time  being  the  idle  time  of  the  job  after  each 
operation.  The  time  for  the  first  operation  is  added 
to  the  second,  the  second  to  the  third,  the  third  to  the 
fourth,  etc.,  until  the  total  time  required  for  the  sum 
of  the  different  operation  is  known  in  work  hours. 
With  the  date  of  delivery  of  the  job  set,  each  opera- 
tion can  then  be  dated  as  to  it^  time  to  start  on  a  given 
hour  and  a  given  day.  In  case  of  change  of  final  dates 
of  delivery  new  dates  for  each  of  the  elemental  opera- 


194 


EXAMPLES   OF   SCIENTIFIC    MANAGEMENT 


I*  ! 


tions  are  readily  set  by  any  clerk  without  further  esti- 
mating. 

Coincident  with  the  starting  of  this  plan  records 
were  maintained  of  the  actual  time  taken  to  do  these 
operations  in  the  shop.  Soon  a  large  library  of  infor- 
mation was  obtained,  and  estimates  are  now  made  from 
these  facts  rather  than  from  opinion. 

The  delivery  of  finished  jobs  on  schedule  time  began 
to  occur  with  marked  regularity  within  a  matter  of 
only  a  few  weeks  after  the  plan  was  started. 

After  the  order  was  written,  as  noted  previously,  it 
was  sent  to  the  planning  room.  The  route  file  clerk 
immediately  translated  and  wrote  the  order  on  a  route 
sheet.  He  at  the  same  time  wrote  a  job  card  for  each 
operation  and  symbolized  it  according  to  the  class  of 
work  called  for  by  the^operation.  The  job  card  con- 
sisted of  three  copies;  the  face  copy  being  a  small 
coupon;  the  second  copy  an  Inspector's  and  move 
ticket ;  the  third  copy  a  workman's  job  card. 

The  route  file  clerk  also  wrote  the  material  stock 
issue  for  such  materials  as  were  specified  in  the  order. 
He  wrote  the  symbol  and  date  for  each  operation  on  a 
long  narrow  schedule  card  which  was  then  hung  be- 
tween hooks  on  a  bulletin  board.    The  spacing  of  writ- 
ing on  this  card  was  the  width  of  the  small  coupon  of 
the  job  card.    The  coupon  was  punched  with  holes  to 
hang  on  hooks,  each  covering  a  part  of  the  schedule 
card  on  the  bulletin  board.    When  each  job  started, 
the  coupon  was  hung  on  the  hooks  over  the  correspond- 
ing operation  noted  on  the  schedule  card.    Since  the 
schedule  cards,  as  well  as  the  coupons,  bore  the  date 
that  each  operation  was  to  start,  if  the  coupon  was 
hung  on  the  board  over  its  corresponding  place  on  the 
card,  it  was  evident  that  the  job  had  started.    In  case 


THE    REPAIR    SHOP 


195 


an  exposed  date  on  a  schedule  card  was  behind  the  date 
on  which  the  board  was  being  inspected,  this  card  date 
was  not  covered  with  a  coupon,  and  it  was  evident  that 
the  job  was  behind  schedule.  The  board  was  inspected 
each  two  hours  in  the  day  and  all  dates  behind  the 
current  date  were  blue  pencilled  if  they  were  not  cov- 
ered by  a  job  coupon. 

A  mere  glance  at  the  bulletin  board  indicated  at  once 
to  the  superintendent  any  jobs  that  were  weak  and 
behind  schedule,  and  he  could  take  immediate  construc- 
tive action  with  the  minimum  of  his  attention. 

After  the  route  sheet  is  written,  a  second  copy  is 
made  on  a  heavy  card,  and  the  card  is  sent  to  the 
foreman  in  the  shop  as  instructions  for  work. 

The  job  cards  are  put  in  boxes  in  despatch  racks, 
especially  arranged  as  follows : 

One  box  is  prepared  for  each  class  of  work,  the  bot- 
tom of  which  is  divided  into  two  compartments:  one 
in  the  front  for  jobs  that  were  ready  to  be  worked 
upon ;  one  in  the  back  for  jobs  written  and  in  process, 
but  not  yet  ready  to  be  worked  upon.  In  the  cover 
of  each  box,  which  is  raised  at  right  angles,  are  thin 
compartments,  one  for  each  man  listed  in  that  class 
of  work,  the  arrangement  in  the  order  of  their  ability, 
i,e,,  the  boxes  are  arranged  and  classified  strictly  ac- 
cording to  the  classification  chart. 

After  the  route  file  clerk  has  written  the  job  cards 
for  a  given  job,  they  are  sent  to  the  despatch  clerk, 
who  puts  the  first  operation  job  cards  in  the  front  com- 
partment of  the  box  representing  the  class  of  work 
to  which  it  is  routed.  All  other  cards  are  placed  in 
the  rear  compartment  of  the  boxes  representing  the 
classes  of  work  to  which  they  are  routed — i.e.,  each 
order  is  subdivided  by  its  job  cards  into  the  different 


196 


EXAMPLES   OF   SCIENTIFIC    MANAGEMENT 


classes  of  work  as  standardized.  When  a  workman 
IS  available  in  any  one  class,  having  finished  a  previous 
job,  he  hands  in  his  card  to  the  despatch  clerk,  who 
notes  the  classification  under  which  the  workman  has 
been  working,  goes  to  the  corresponding  box,  takes  out 
the  first  job  in  the  box  and  gives  it  to  the  worker. 

All  jobs  in  the  front  compartment  of  the  boxes  are 
arranged  strictly  according  to  their  dates,  and  the  job 
which  the  workman  receives  is  obviously  the  one  re- 
quiring first  attention.  Since  this  arrangement  of  job 
cards  by  dates  is  one  of  the  fundamental  elements  in 
the  despatch  plans  of  all  three  enterprises,  it  will  be 
essential  that  a  complete  understanding  of  this  be 
grasped  at  this  time. 

When  the  above-mentioned  workman  finishes  the  job 
which  he  has  and  returns  for  more  work  in  his  cla«s 
the  despatch  clerk  may  find  that  there  is  no  more 
work  there  standing.  In  this  case  he  would  give  him 
the  first  job  in  the  next  lower  class  in  which  a  job 
was  standing.  If  any  operation  is  urgent— i.e.,  be- 
hind date,  or  a  customer  was  waiting  for  a  job  a 
red  "lot  urgent"  tag  is  attached  to  that  operation, 
and  when  a  man  rings  out  in  a  class  above  that  in 
which  the  card  is  standing  he  is  given  this  urgent 
nob  first,  regardless  of  other  work  in  his  class  or 
nearer  to  his  class.  ' 

Upon  the  foreman's  receipt  of  the  card  copy  of  the 
route  sheet,  and  the  workman  reporting  to  the  job 
with  his  card,  the  foreman  assists  the  man  to  start  on 
the  job,  and  from  time  to  time  inspects  his  work  in 
process. 

At  the  completion  of  each  operation  a  floor  inspector 
makes  a  careful  inspection.  He  also  makes  a  final 
mspection  of  the  complete  job. 


THE   KEPAIR  SHOP 


197 


Tools  have  been  highly  standardized  for  the  differ- 
ent classes  of  work,  and  each  worker  is  equipped  with 
a  standard  set.  Special  tools  are  accessible,  as  are 
materials  from  stock  rooms  immediately  adjacent. 

At  four  o'clock  each  day  the  jobs  ready  to  be  worked 
on  are  inspected  as  to  dates.  If  any  are  behind  sched- 
ule, they  are  either  marked  with  a  "Back  of  Schedule" 
card  or  an  "urgent"  card,  depending  on  their  relative 
importance.  The  bulletin  board  is  marked  to  corre- 
spond. Curves  are  plotted  daily  to  show  the  number 
of  operations  behind  schedule,  the  number  of  opera- 
tions ahead  of  the  shop  and  the  percentage  of  opera- 
tions of  the  shop  which  are  behind  schedule.  These 
curves  are  posted  in  the  superintendent's  office,  and 
are  in  general  the  regulator  of  the  promised  dates  of 
delivery  of  new  work.  If  his  percentage  of  jobs  "be- 
hind schedule"  is  very  low,  he  will  give  earlier  orders 
of  deliveries  on  new  jobs.  If  there  are  many  ahead  of 
the  shop  he  will  make  later  dates  of  delivery  of  new 
jobs.  In  this  way,  after  a  reasonable  experience  he 
is  able  to  maintain  a  very  equitable  burden  upon  the 
shops. 

RESULTS  OF  REORGANIZATION 

The  superintendent  and  chief  estimator  is  never  un- 
der a  heavy  pressure  of  executive  work,  and  can  meet 
customers  and  deal  with  them  without  interruption.  He 
can  retain  their  respect  on  account  of  better  delivery 
dates  of  the  finished  jobs.  His  intelligence,  as  well  as 
the  combined  intelligence  of  the  shop,  is  accessible  to 
all  persons  for  common  use,  without  interruption  of  the 
workers  at  their  particular  tasks. 

Costs  are  based  on  estimates  and  are  practically  ex- 
act.   Customers'  complaints  are  seldom  heard. 


M 


I- 
f  I 

hi 


1 1 


!  \ 


198 


EXAMPLES   OF   SCIENTIFIC    MANAGEMENT 


The  peak  load  of  burden,  while  not  entirely  removed, 
is  much  improved,  and  the  change  in  the  burden  is 
gradual  and  can  be  anticipated.  This  allows  for  the 
taking  care  of  workers  in  the  shop,  or  in  outside  indus- 
tries. 

The  lost  time  due  to  waiting  for  materials  and  tools, 
and  particularly  for  instructions  to  the  workers,  has 
been  eliminated.  Consequently  the  income  of  the  shop 
is  now  profit  rather  than  net  loss. 

The  workers  have  been  materially  benefited  by  this 
through  a  complete  readjustment  of  their  wages,  with 
increases  to  an  equitable  amount. 

The  conditions  of  the  shop  with  its  certainty  of  in- 
structions, regularity  of  orders,  the  lack  of  expression 
of  violent  opinions,  have  improved  so  materially  that 
there  is  no  comparison  between  the  new  and  the  old 
conditions. 

The  workmen  appreciate  being  told  specifically  what 
they  are  to  do,  and  being  free  from  criticism  in  case 
the  instructions  fail. 

The  final  result  of  the  shop  is,  equitable  charges  for 
good  services,  generally  rendered  on  the  date  due. 


ENTEEPEISE     NO.    2— THE    SMALL    PARTS 

FACTORY 

Unlike  Enterprise  No.  1,  the  manufacture  of  single 
parts,  or  small  assemblies  for  stock,  offers  an  oppor- 
tunity for  standardization  due  to  the  probability  of  re- 
curring orders.    , 

Sources  of  orders  for  this  shop  are :  First,  the  antici- 
pation of  the  engineers  at  the  time  of  design  as  to 
the  probability  of  wear  or  of  breakage ;  second,  custom- 
ers or  dealers ;  and  third,  quick  orders  from  the  local 
car  repair  shop. 

Since  any  of  these  sources,  or  all,  may  furnish  orders 
simultaneously  for  the  same  part,  it  is  important  that 
some  central  place  be  provided  for  the  accumulation 
of  individual  orders,  and  guided  by  this  accumulation 
the  issue  of  a  single  order  of  standard  size  for  econom- 
ical production  to  the  manufacturing  shop. 

The  practical  medium  for  this  is  the  controlling  bal- 
ance of  stores  ledger.  The  ledger  is  provided  for  sin- 
gle entries  under  the  four  following  headings:  First, 
On  Order;  second.  On  Hand;  third.  Apportioned; 
fourth.  Available.  As  the  individual  orders  are  re- 
ceived they  are  at  once  entered  in  the  column  "Appor- 
tioned," and  subtracted  from  the  column  "Available." 
If  there  is  no  "Available"  at  the  time  of  such  entry  a 
manufacturing  order  is  written  for  the  standard  quan- 
tity, which  quantity  is  posted  in  the  column  "Available" 
and  "On  Order."  The  amount  apportioned  is  then  sub- 
tracted from  the  "Available"  column.    From  this  time 

199 


i 


200 


EXAMPLES   OF   SCIENTIFIC    MANAGEMENT 


on  if  the  "Available"  falls  below  a  predetermined 
amount,  as  recorded  on  the  balance  sheet,  a  new  order 
is  placed  in  the  same  manner.  After  the  order  has  been 
in  process  and  is  closed  by  receipt  of  material  into 
finished  stock,  the  amount  of  parts  is  added  to  the  "On 
Hand"  column  and  subtracted  from  "On  Order"  col- 
umn. When  shipment  is  made,  amount  is  subtracted 
from  "Apportioned"  column  and  "On  Hand"  column. 
This  completes  the  ledger  transaction. 

The  manufacturing  order  is  written  in  three  copies 
and  is  sent  over  a  predetermined  routing  as  standard- 
ized and  printed  on  the  order.  The  date  to  finish  is 
entered  on  the  order.  The  order  path  is  as  follows : 
First,  the  routing  department  for  preparation  of  route 
sheet,  tools,  patterns,  time  studies;  second,  a  requisi- 
tion of  materials  calling  for  purchase  order;  third, 
preparation  of  the  route  file;  fourth,  starting  of  the 
material  into  the  shop ;  fifth,  closing  order ;  sixth,  com- 
piling cost. 

When  the  order  is  received  by  the  routing  depart- 
ment the  master  mechanic  prepares  a  route  sheet  which 
shows  the  different  operations  to  be  performed  on  the 
part,  tools  and  machine  for  each  operation,  unit  mate- 
rial and  standard  time  for  each  operation.  He  deter- 
mines the  standard  lot  size  and  establishes  and  enters 
the  routing  time  for  the  lot  from  the  receipt  of  raw 
material  to  finished  stock.  This  latter  information  is 
used  by  the  route  file  clerk  to  date  each  operation  order 
for  time  due  on  the  machine. 

After  the  unit  material  is  specified  the  amount  for 
the  lot  is  determined  and  recorded  on  stores  is- 
sue. The  stores  issue  is  passed  over  a  raw  stores 
ledger  in  the  identical  manner  of  the  manufacturing 
order. 


THE    SMALL   PARTS   FACTORY 


201 


A  standard  time  for  securing  each  kind  of  material 
is  established  by  the  purchasing  agent.  It  is  arranged 
in  such  classes  as  bar  stock,  forgings,  aluminum  cast- 
ings, sheet  aluminum,  grey  iron  castings,  etc.  The 
standard  time  specified  for  each  article  is  limited  by 
the  ability  of  the  purchasing  agent  regularly  to  bar- 
gain, buy  and  deliver  to  stores. 

A  standard  time  is  provided  for  the  material  to  pass 
through  the  inspectors  and  into  stock. 

To  prepare  the  route  file,  a  job  card  is  written  for 
each  operation.  The  information  on  the  job  card  is: 
part  drawing  number,  lot  number,  operation  number, 
name  of  part,  name  of  operation,  machine  for  the  oper- 
ation considered  and  the  machine  for  the  succeeding 
operation. 

The  stores  issue  is  prepared  to  show  part  drawing 
number,  lot  number,  part  name,  unit  material,  total  ma- 
terial for  lot,  name  of  material,  date  due  to  issue  to 
shop,  machines  for  operation  considered,  and  certain 
other  essential  entries,  as — when  order  is  apportioned 
or  issued. 

A  stock  tag  is  written  which  accompanies  the  mate- 
rial through  all  operations ;  the  tag  shows  part  name, 
drawing  number,  lot  number,  and  the  machines  for  the 
complete  routing  of  the  lot.  The  tag  is  an  identifica- 
tion of  the  material  and  subsequent  parts,  and  is  never 
removed  from  the  lot. 

The  different  papers  are  dated  as  follows :  A  straight 
line  calendar  is  used.  This  shows  dates  only  of  work- 
ing days  for  the  year.  The  interval  of  spacing  for 
each  date  is  constant.  Another  scale  is  divided  into 
the  same  interval,  reading  from  zero  up  to  a  total 
number  of  days  as  the  longest  time  from  the  receipt  of 
the  customer's  order  to  the  delivery  of  finished  parts 


202 


EXAMPLES    OF   SCIENTIFIC    MANAGEMENT 


on  shipment.  In  this  particular  shop  150  days  is  ap- 
proximately the  limit.  The  zero  of  the  number  scale 
is  set  to  the  date  of  part  due  in  stock  as  finished,  and 
from  the  route  sheets  the  days  are  read  off  when  each 
operation  must  start  for  the  particular  lot. 

The  standards  involved  in  the  above  are  routing 
to  manufacturing  orders,  lot  size,  purchasing  time, 
stores'  time,  producing  time,  and  allowance  time  for 
the  lot  to  move  from  one  operation  to  the  next,  fix- 
tures, tools  and  instructions. 

After  the  route  file  is  prepared  and  a  tickler  copy 
of  the  manufacturing  order  calls  for  the  starting  of 
a  job,  the  following  procedure  is  carried  out:  Assum- 
ing that  the  material  has  been  received  and  is  in  stores 
and  the  receiving  ticket  has  been  recorded  at  the  ledger 
for  that  material,  the  combined  stores  issue,  move 
ticket,  and  job  cards  are  sent  to  the  stock  room.  The 
stock  is  delivered,  receipted  for  by  the  shop  represen- 
tative and  the  issue  returned  to  the  stock  room.  From 
here  it  is  distributed,  one  copy  to  the  planning  depart- 
ment showing  the  issue  of  the  material,  another  copy 
through  the  stores  ledger  and  into  costs.  The  job  cards 
which  accompany  the  stores  issue  and  material  to  the 
shop  are  distributed  in  the  job  card  racks  under  the 
following  plan : 

We  will  consider  the  machines  of  one  group : 

Assume  this  to  be  turret  lathe  with  a  symbol  LT, 
and  nine  machines  in  this  group  numbered  from  1  to  9, 
i.e.,  No.  ILT,  is  No.  1  Turret  Lathe,  2LT  is  No.  2  Tur- 
ret Lathe,  etc. 

All  of  these  machines  are  maintained  in  perfect  con- 
dition, and  all  work  is  interchangeable. 

When  an  operation  is  planned  to  go  on  a  turret  lathe 
the  symbol  LT  is  shown  on  the  route  sheet  and  is  car- 


THE    SMALL   PARTS    FACTORY 


203 


ried  forward  to  all  job  cards.  There  are  also  jobs  com- 
ing to  these  machines  from  other  route  sheets.  The 
jobs  having  been  dated  from  the  different  route  sheets 
as  to  the  time  due  on  the  machines,  they  can  be  ar- 
ranged in  the  despatch  rack  box  in  the  order  of  dates 
and  will  go  on  to  the  machines  in  their  proper  order. 
In  a  vertical  cover  of  the  box  are  card  holders,  one 
for  each  of  the  nine  machines.  When  a  job  is  given 
out  from  the  main  group  of  jobs  to  an  individual  ma- 
chine, the  job  card  is  time  stamped  and  one  copy  given 
to  the  individual  worker,  who  takes  it  to  his  ma- 
chine. The  other  copy  is  placed  in  the  card  holder 
for  that  machine.  As  workmen  change  their  jobs, 
the  lots  are  given  out  in  succession  in  the  above 
way. 

If  the  date  of  delivery  of  a  final  lot  of  material  be 
changed  a  new  date  is  set  on  the  calendar  rule,  and 
all  job  cards  are  drawn  and  re-dated,  and  are  again 
re-distributed  strictly  in  the  order  of  their  dates.  This 
may  put  them  ahead  or  behind  their  old  schedule  posi- 
tions. 

When  a  workman  completes  his  job  he  turns  in  his 
job  card,  which  is  then  time-stamped.  He  is  given  at 
once  a  new  job  on  his  machine.  The  old  job  card  is  then 
sent  through  to  the  route  sheet  and  ledgers  for  record 
and  into  the  payrolls  and  costs  for  the  labor  determina- 
tion. 

At  the  same  time  the  duplicate  of  the  old  job  card  is 
delivered  to  the  inspector,  and  after  inspection  to  the 
moveman,  by  which  authorization  he  moves  material 
to  the  next  operation. 

When  the  job  passes  through  final  inspection,  it  is 
received  in  the  stock  room  on  the  last  move  ticket  and 
delivered  to  the  assigned  location.     This  last  move 


204 


EXAMPLES   OF    SCIENTIFIC    MANAGEMENT 


I    ( 


ticket  then  goes  through  to  the  records  and  costs,  show- 
ing the  lot  to  be  closed. 

Assemblies  are  treated  exactly  the  same  as  parts, 
except  that  a  "group  issue"  is  used  instead  of  a  "single 
stores  issue."  The  "group  issue"  may  call  for  pur- 
chased finished  materials,  or  for  produced  materials, 
and  one  will  be  written  for  each  stock  room  in  case 
the  specification  calls  for  it. 

The  principal  feature  in  this  particular  control, 
which  differs  from  anything  previously  done,  is  the 
introduction  of  standard  times  for  the  production  of 
standard  lots,  and  the  output  determined  by  the  fre- 
quency with  which  the  lots  are  started. 

The  dating  of  the  job  cards  from  the  standard  times 
on  the  route  sheets  is  easily  accomplished,  and  the  re- 
sponsible authorities  are  required  only  to  set  the  date 
of  delivery,  after  which  the  route  file  clerk  can  set  the 
dates  for  each  operation. 

If  at  4  o'clock  on  any  day  any  job  on  any  operation 
is  not  on  the  machine,  as  called  for,  a  "Lot  Ur- 
gent" tag  is  attached,  and  from  that  time  on  the  job 
is  worked  unceasingly  night  and  day.  (This,  how- 
ever, will  be  described  in  detail  under  "Enterprise 
No.  3.") 

As  in  Enterprise  No.  1,  the  capabilities  of  different 
men  have  been  considered  and  recorded.  After  each 
operation  on  the  route  sheet  is  marked  the  work  char- 
acteristic letter  as  A,  B  or  C,  Machine  symbols  are 
also  marked  with  the  same  designations  for  machine 
conditions.  Workmen  are  interviewed  and  an  agree- 
ment is  reached  for  rating  men  according  to  ability  as 
A,B  ovC,  With  this  plan  in  operation  A  work  is  auto- 
matically despatched  to  an  A  machine,  at  which  is  pro- 
vided an  A  operator.    Except  in  cases  of  lack  of  work 


THE   SMALL   PARTS   FACTORY 


205 


or  of  heavy  peaks  this  arrangement  is  rarely  broken. 
Occasionally  an  A  man  may  be  operating  on  a  ^  ma- 
chine on  C  work,  etc.  Such  combinations,  however,  can 
only  be  obtained  by  request  of  the  despatch  clerk  upon 
the  shop's  supervisor. 

Under  this  plan  is  obtained  a  high  degree  of  rout- 
ing and  of  despatching,  but  with  the  requirement  of 
individual  scheduling.    That  is,  each  lot  of  each  part 
must  be  scheduled  independently.     This  is  relatively 
simple  when  standard  times  have  been  established  upon 
which  dates  can  be  readily  placed.    To  re-schedule  a 
part  on  all  operations,  the  chief  schedule  clerk  is  re- 
quired to  set  a  date  of  completion  on  the  lot  only,  all 
other  dates  previous  to  that  being  set  by  the  calendar 
rule.    If,  when  dating,  any  operation  is  due  before  the 
current  date,  a  "Lot  Urgent"  tag  is  applied.     When 
this  appears,  the  shop's  supervisor  is  instructed  to  pro- 
vide extra  facilities  for  carrying  out  such  work. 
^  The  allowance  time  which  has  been  previously  men- 
tioned is  very  important  in  the  smooth  operating  of 
the  shop,  and  it  is  determined  and  adjusted  until  the 
"Lot  Urgent"  tags  do  not  become  too  great  for  eco- 
nomical working.    This  allowance  time  is  the  time  from 
the  finish  of  one  operation  on  a  part  to  the  beginning 
of  the  next.    It  is  found  by  first  studying  the  average 
condition  existing  in  the  shop  at  the  time  of  its  appli- 
cation. 

Records  are  kept  of  the  time  when  material  is  started 
into  the  shop  and  the  time  that  it  is  received  in  the 
finished  material  stock  room.  The  number  of  opera- 
tions on  a  part,  that  is,  the  number  of  moves  between 
machines  is  used  as  a  divisor  for  this  time.  The  re- 
sult is  the  allowance  time  per  operation.  While  this 
obviously  will  not  be  constant  at  first,  there  is  a  prob- 


206 


EXAMPLES   OP   SCIENTIFIC    MANAGEMENT 


THE   SMALL   PARTS   FACTORY 


II     ^ 


If 


ability  which  must  be  recognized,  that  it  will  require 
this  time  on  an  average.  Any  longer  than  such  time 
will  cause  sluggishness  of  the  mo\v..xient  of  work  and 
unnecessary  work  in  process  investment  account.  Any 
shorter  time  than  this  average  will  be  obtained  only 
by  intensive  supervision.  It  is  well  worth  while  to 
bring  the  average  allowance  time  to  as  limited  an 
amount  as  is  consistent  without  an  undue  quantity  of 
"Lot  Urgent"  tags. 

In  the  writer's  experience  it  has  been  found  in  ordi- 
nary machine-shop  practice,  that  one  current  day  in 
addition  to  the  running  time  of  ea^h  operation  is  alDout 
the  minimum  which  can  be  operated,  for  very  good 
running  of  a  production  shop.  In  the  job  shop,  such 
as  described  in  Enterprise  No.  1,  in  previous  para- 
graphs, where  rapid  delivery  of  orders  is  needed,  this 
may  be  worked  as  low  as  one-half  day.  If  the  allow- 
ance is  less  than  one  day,  then  the  scheduling  of  orders 
must  be  to  the  hour,  as  is  done  in  Enterprise  No.  1. 
If  not  by  the  hour,  then  the  allowance  time  must  at 
least  equal  one  day. 

It  should  be  understood  that  the  lot  size  means  that 
quantity  which  will  move  from  one  operation  to  an- 
other, and  at  each  operation  each  piece  shall  be  worked 
upon  on  that  operation  before  the  lot  is  moved  to  the 
next.  It  does  not  consider  the  issuing  of  a  large 
order  and  then  partial  movements  thereto,  which  are 
not  supervised.  If  any  lots  are  to  be  broken,  it  should 
be  done  only  by  special  permission  of  the  Production 
Manager  or  by  someone  delegated  by  him,  who  will 
allow  no  such  permission  to  be  extended  until  after 
careful  consideration  of  all  reasons  therefor. 

In  this  enterprise  and  the  one  previously  mentioned, 
each  order  on  each  part  has  its  individual  treatment 


207 


for  schedule.  In  Enterprise  No.  3  this  condition  will 
change,  and  a  schedule  for  one  of  the  main  parts  will 
be  so  arranged  as  to  become  automatically  a  schedule 
for  each  part  and  each  actively  included  in  the  major 
part. 


16 


I    > 


PLANT   WITH   UNIFORM   MANUFACTURE 


209 


ENTEEPEISE  NO.  3— PLANT  WITH  UNIFORM 

MANUFACTUEE 

The  typical  case  cited  is  the  manufacture  of  an 
automobile,  in  which  there  is  practically  no  intermix- 
ing of  a  variety  of  models,  which  can  be  manufactured 
to  a  pre-determined  schedule.  A  consideration  of  this 
problem  will  indicate  that  there  is  but  one  article  to 
sell,  that  is  the  finished  automobile.  This  cannot  be 
accomplished  unless  it  be  accurately  co-ordinated,  so 
that  the  exact  quantity  of  parts  come  at  the  correct 
time,  to  go  in  the  subsequent  assemblies.  Any  long 
delay  of  one  part  would  tie  up  all  industrial  activity 
and  restrict  all  income  from  salable  product. 

The  principal  activity  should  thus  seem  to  be  concen- 
trated upon  the  co-ordination  of  all  factors  which 
enter  into  the  production  of  parts  and  subsequent  as- 
semblies in  proper  chronological  order.  The  product 
must  be  thoroughly  analyzed  and  a  diagram  made 
showing  the  path  of  flow  of  each  of  the  parts  through 
sub-assemblies  and  into  final  assembly.  If  such  a  dia- 
gram is  laid  out,  showing  not  only  the  parts,  but  each 
of  the  activities  upon  each  part,  and  are  arranged  to 
some  scale,  which  will  shop  the  time  at  which  each  oper- 
ation must  be  done  with  relation  to  any  other,  we  have 
the  ground  plan  for  a  very  simple  method  of  schedul- 
ing and  of  intensive  supervision. 

To  erect  such  a  diagram,  the  exact  producing  time 
for  each  operation  on  each  part  must  be  known;  the 
allowance  time  between  operations  must  be  known; 

208 


the  length  of  time  for  materials  to  remain  in  the  Eaw 
Stock  Eoom  and  in  the  Finished  Stock  Eoom  must 
be  standardized ;  the  Purchasing  Agent  must  agree  to 
a  standard  time,  in  which  to  buy,  bargain  and  deliver 
the  different  classes  of  material  into  the  Stock  Eoom 
after  date  of  requisition  therefor.  If  patterns,  dies 
and  tools  must  be  provided  for,  they  should  be  shown 
on  this  diagram  in  the  proper  place. 

The  typical  part  would  then  show  the  following 
items  on  the  diagram : 

1.  Specification  due  from  Designing  Department 

2.  Order  for  pattern  or  die,  if  required 

3.  Pattern  or  die  due,  finished 

4.  Eequisition  for  material 

5.  Tools  ordered 

6.  Tools  finished 

7.  Material  due  in  stores 

8.  Material  due  on  first  machine  or  station 

9.  10,  11,  etc.,  materials  due  on  subsequent  machines 
and  last,  material  due  in  Worked  Materials  or  Finished 
Stock. 

Since  a  variety  of  parts  may  be  required  for  one 
assembly,  and  the  assembly  is  to  be  started  only  when 
all  the  parts  are  available,  that  is,  unit  assembly  con- 
sidered, it  will  be  obvious  that  the  elements  mentioned 
above  will  occur  in  different  time  positions  for  differ- 
ent parts,  so  that  they  may  all  be  ready  to  issue  at  one 
time.  If  this  assembly,  just  mentioned,  is  one  part 
only  of  a  larger  assembly,  then  the  same  process  will 
be  repeated  through  to  the  final  assembly  of  the  fin- 
ished product. 

With  standard  lots  established,  the  producing  time 
per  lot  on  each  operation  will  be  constant,  and  with  a 


210 


EXAMPLES   OF   SCIENTIFIC    MANAGEMENT 


f     f  I 


constant  allowance  time,  standard  stores  and  purchas- 
ing times,  all  parts  will  in  general  follow  closely 
the  same  total  time  from  date  of  first  requisition  to 
finished  product.  If  the  lot  size  of  some  parts  will 
provide  for  the  issue  of  a  number  of  lots  of  the  assem- 
bly into  which  it  goes,  the  standard  lots  will  be  issued 
less  frequently  than  of  some  other  parts,  which  sat- 
isfy but  one  or  at  least  a  very  few  lots  of  the  assem- 
bly in  which  they  go,  that  is,  the  lot  sizes  of  parts 
may  be  established  on  individual  economic  determi- 
nation. 

The  quantity  produced  will  depend  upon  the  fre- 
quency with  which  the  lots  are  started  through  the 
different  stations  in  the  process  of  making.  If  the 
quantity  record  at  each  station  is  made  to  read  in 
terms  of  the  number  of  cars,  which  will  be  satisfied 
by  the  quantity,  with  the  amount  so  produced,  a  sched- 
ule can  be  planned  for  the  finished  product  itself  and 
applied  successively  over  each  activity  on  each  part, 
thus  eliminating  any  need  for  any  other  individual 
scheduling  for  each  part. 

Such  a  diagram  as  has  been  mentioned  will  reduce 
in  its  simplest  form  (and  even  this  is  very  elaborate)  to 
what  has  been  called  a  Control  Board.  These  Boards, 
which  have  been  used  by  the  writer  for  this  purpose, 
consist  of  large  frames,  seven  feet  high  and  ten  feet 
long.  On  the  face  of  each  frame  are  strips,  each  inde- 
pendent of  the  other,  but  supported  on  wire  cables, 
very  much  the  same  as  designed  for  roller  doors  or 
roll-top  desks.  Strips  may  be  added  to  or  taken  from 
this  board  without  difficulty,  and  as  combinations  of 
parts  and  assemblies  change,  new  ones  can  be  added  or 
the  old  ones  readily  removed. 

Beginning  at  the  right-hand  edge  of  each  strip,  consid- 


PLANT   WITH    UNIFORM    MANUFACTURE 


211 


ered  as  the  zero  point,  each  V2  inch  to  the  left  is  scaled 
as  a  working  day.  Since  the  boards  are  ten  feet  long, 
this  provides  for  two  hundred  and  forty  working  days. 
On  the  right  hand  of  the  zero  point  appears  but  one 
record  place,  and  that  is  the  finished  car.  To  the  left 
and  at  the  Droper  place,  each  activity  on  each  part  is 
then  recorded.  The  space  for  this  erection  is  a  steel 
cage,  i/s-inch  square,  in  the  bottom  of  which  is  a  marker 
showing  the  machine  symbol.  The  operation  name  of 
each  part,  numbers  pertaining  to  lot  size  and  number 
per  car  are  on  a  marker  at  the  right  hand  end  of  the 
finished  part.  That  is,  if  a  steering  device  of  a  stand- 
ard lot  size  of  50  is  to  be  finished  and  issued  to  the 
chassis  assembly  20  days  before  the  car  can  be  shipped, 
the  Finished  Stock  cage  for  the  steering  device  will 
be  10  inches,  or  20  one-half -inch  working  days,  to  the 
left  of  the  zero  or  car  finish  point.  Each  operation 
performed  on  the  steering  device  will  have  its  individ- 
ual cage  at  the  proper  time  distance  to  the  left  of  the 
Finished  Stock  cage. 

The  following  details  of  the  exact  order  of  procedure 
in  the  use  of  this  type  of  complex  control,  while  inten- 
sive in  detail,  are  the  least  that  will  provide  useful  de- 
scription. The  desire  in  any  intensive  management 
plan,  which  will  eventually  be  the  only  one  worth  while, 
should  be  to  detail  every  possible  activity  to  its  least 
form.  There  is  a  tendency  to  feel  that  this  causes  a 
great  amount  of  detail,  but  it  should  be  recalled  that 
if  such  detail  actually  exists  somewhere  in  processes 
of  the  manufacturing  effort,  it  is  worth  while  con- 
centrating it  into  physical  demonstration  at  one  loca- 
tion. 

To  take  advantage  of  the  new  form  of  Manufactur- 
ing Control,  our  work  plan  is  as  follows : 


<M 


212  EXAMPLES   OF   SCIENTIFIC    MANAGEMENT 

THE  ENGINEEKING  DEPARTMENT'S  DUTIES 

Design. 
Draft. 
Cheek. 
Trace. 
Blue  print. 

Supervise  and  make  alterations  on  parts  drawings 
and  assembly  drawings.  On  part  drawings  they  will 
show  details  to  include : 

Drawing  number  or  symbol,  or  both. 

Form. 

Sizes  with  limits  and  tolerances. 

Character  of  materials  by  number  corresponding  to 
specification. 

Heat  treatment  or  other  processes. 

Location  of  parts  in  groups  and  models  with  quan- 
tity required  in  each.  They  will  also  show  if  the  part 
is  to  perform  a  new  function  or  is  to  displace  at  once, 
or  supersede,  a  part  then  in  current  production. 

Assembly  drawings  will  show: 

Drawing  number  or  symbol,  or  both. 

Arrangement,  location,  drawing  number,  or  symbol, 
and  quantity  of  each  part  in  the  assembly. 

Miscellaneous  classified  parts,  to  be  shown  by  sym- 
bols as  recorded  in  the  Stores  Classification. 

Heat  treatment  or  other  processes. 

Location  in  other  assemblies  or  models. 

Quantity  per  other  assembly  and  model. 

ENGINEERING  INSPECTION  DUTIES 

Inspect  and  report  on  all  receipts  of  purchased  mate- 
rials and  parts,  to  agree  with  Purchase  Order  and 
Specifications. 


PLANT   WITH   UNIFORM   MANUFACTURE 


213 


On  parts  in  process  inspect  for : 
Dimension. 

Eesult  of  heat  treatment  or  processes. 
Defects  in  material  or  form. 

Certify  to  number  perfect  or  imperfect  under  the 
above. 

Record  findings  on  Job  Inspector's  Coupon. 
Inspect  and  test  assemblies  and  finished  product. 

ROUTING   section's   DUTIES  AND   INSTRUCTIONS 

Check  engineers'  paper  drawings  for  tool  construc- 
tion, manufacturing  processes  and  suggest  grouping  of 
parts  in  assemblies.  Any  part  on  assembly  drawing 
must  be  specific,  conform  to  group,  dimensions,  etc.,  as 
planned,  and  show  all  parts  on  actual  record,  but  no 
others. 

Receive  from  engineers,  blue  prints  for  parts  for  as- 
semblies on  which  are  shown: 

Mark,  name  or  symbol  of  assembly  into  which  the 
parts  go,  and  the  date  at  which  the  first  car  with 
the  part  is  to  be  finished. 
Date  and  send  prints  to  Control  Board. 
Receive  prints  from  Control  Board  and  date  receipt. 
Indicate  on  the  parts  print : 

Symbol  of  part,  if  not  on  the  drawing. 
The  total  producing  time  and  number  of  opera- 
tions for  standard  lot. 
The  work  days  that  the  part  must  first  leave 
Worked  Material  Stores  before  the  finished  car. 
(A  part  must  always  be  controlled  in  the  first 
group,  which  leaves  Worked  Materials  Stores. ) 

Specify  tools  by  name,  or  number,  or  other  drawing 
used  on.    Specify  work  days  required  to  produce. 


II 

1 


I 


II  'i 


j    ^'!    i! 


I    ' 


214 


EXAMPLES   OF  SCIENTIFIC   MANAGEMENT 


Specify  patterns  as  new  or  as  used  on  other  draw- 
ings.    Specify  required  work  days  to  produce. 

Specify  lead  proofs  or  samples  for  approval. 

Specify  size  and  form,  but  lot  quantity  only  of  mate- 
rial. 

Specify  number  of  pieces  in  lot. 

Determine  lot  sizes  (considering  size  of  assembly 
into  which  part  goes,  bulk  of  part  and  total  producing 
time  on  part). 

To  determine  lot  sizes :  This  important  decision  must 
receive  most  careful  attention,  since  many  elements 
enter  into  it.    Among  the  most  important  are : 

Number  of  pieces  required  for  first  assembly  into 

which  they  go. 
Lot  size  of  assembly. 
Bulk  of  piece. 
Producing  time  per  piece. 
Time  required  to  secure  material 
Preparation  time  per  lot. 
Material  value  per  piece. 
Perishable  nature  of  material. 
Number  of  pieces  required  for  one  piece  of  fin- 
ished product. 

Time  that  piece  enters  the  product  before  fin- 
ished product. 

Permanency  of  design. 

Probable  loss  by  serap  or  diversion  (diversion 
affected  by  number  of  assemblies,  which  finish 
in  sequence). 

Number  of  operations  to  be  performed. 
Long  time  processes  (or  lot  times). 
Number  of  lots  required. 

Machine  burdens  (whether  continuous  or  inter- 
mittent). 


!   Mi* 


PLANT    WITH    UNIFOKM    MANUFACTUBE 


215 


The  expression  for  actual  determination  of  mini- 
mum size  of  lot  will  be  obtained  from  the  Production 
Manager. 

Lot  sizes  for  parts  which  have  long  purchase  time 
or  go  into  early  assemblies  will  in  general  be  smaller 
than  undtr  other  conditions. 
Date  and  send  blue  prints  to  Control  Board. 
Blue  prints  must  specify  the  schedule  tape  by  which 
each  part  is  to  be  controlled.  We  have  four  tapes  for 
Series  8 :  one  for  parts  common  to  all  models ;  one  for 
parts  used  only  on  Touring;  one  for  parts  used  only  on 
Runabout,  Coupe  or  Berlin  and  one  for  parts  used  only 
on  Sedans.  For  any  combinations  of  models  other  than 
these,  specify  such  parts  for  control  by  the  next  higher 
tape ;  t.e.,  a  part  used  on  Touring  and  Runabout  will  be 
controlled  by  the  all  models  tape.  For  such  of  these 
parts  as  are  so  expensive  or  bulky  that  we  do  not  want 
to  manufacture  them  at  too  high  a  rate,  use  the  route 
sheet  method  of  control. 

Specify  and  add  to  assembly  drawings : 

Symbol  of  assembly,  if  not  on  the  drawing. 
The  total  producing  time  and  number  of  opera- 
tions for  standard  lot.    Allow  for  single  moves  or 
gang  of  men  on  same  lot 

The  work  days  that  the  assembly  must  leave 
Worked  Materials  Stores  before  the  finished  car. 
The  tools  or  other  special  equipment. 
The  number  of  assemblies  in  lot. 
Date  and  send  print  to  Control  Board. 
Receive  part  or  assembly  from  Control  Board  and 
date  receipt. 

Prepare  operation  sheet. 

Send  operation  sheet  to  Control  Board  for  erecting 
operation  cages. 


il 


li 


m 


■i'i'  • 


216 


EXAMPLES   OF   SCIENTIFIC    MANAGEMENT 


Send  all  new  master  group  issues  to  the  Control 
Boards  for  the  purpose  of  checking,  to  see  that  we  have 
a  strip  on  the  board  for  each  manufactured  part.  They 
must  also  be  sent  over  when  any  change  is  made  on 
master. 

Prepare  a  single  copy  of  route  sheet  and  send  to 
vault  for  emergency  use.  (Do  not  draw  this  route  sheet 
except  for  emergency  use.) 

Prepare  inspection  cards,  tool  lists,  three-copy  single 
stores  issue  and  three-copy  group  issues  for  assem- 
blies and  send  stores  group  issue  to  board  for  location 
of  requisition  marker  and  cage. 

Prepare  three-copy  Job  card,  Inspector's  coupon 
and  Move  ticket  and  Foremen's  coupon  for  each  opera- 
tion (see  Figs.  22,  23  and  24). 

Maintain  a  complete  stock  of  all  such  filled  forms  and 
dispose  of  all  which  become  obsolete. 

Prepare  pattern  order,  tool  order,  lead  proof  or  sam- 
ple order  (if  required)  and  send  to  Control  Board. 

Send  notice  of  closed  tool  orders  and  pattern  or- 
ders. 

Prepare  analysis  and  standard  time  sheets  for  all 
possible  operations. 

Order  prints  from  engineers,  receive  and  supply  to 
shops,  supervise,  account  for  and  return  all  obsolete 
prints  to  the  Engineering  Department.  (If  any  prints 
are  retained  after  becoming  obsolete,  secure  such  re- 
lease from  Engineering  Department,  who  will  mark  the 
print  "Obsolete"  and  date  of  such  action.) 

Design  tools  and  equipment. 

Specify  and  order  perishable  tools  and  supplies. 

Superintend  tool  grinding  and  Tool  Repair  Shop. 

Despatch  tools. 

Inspect  and  store  tools. 


m 


PLANT   WITH    UNIFORM    MANUFACTURE 


217 


Select  and  requisition  machinery,  alter,  locate  and 
keep  in  repair. 

Prepare  machine  analysis  diagram. 
Maintain  machine  time  burden  record. 
Maintain  belt  orders. 
Maintain  local  power  transmission. 
Specify  all  routing  for  special  or  irregular  job  or- 
ders, including  returns  for  repairs. 

Prepare  route  sheets,  job  cards,  tags,  store  issues, 
etc.,  for  special  job  orders. 
Obtain  schedule  from  Manager,  showing : 
Models. 
Types. 

Special  equipment. 
Quantities  per  month. 
.     Re-arrange  Managers'  schedule  and  secure  a  uniform 
producing  schedule. 


I' 


218 


EXAMPLES  OF  SCIENHFIC   MANAGEMENT 


PLANT   WITH   UNIFOBM   MANUFACTURE 


219 


«  i 


:  I    ''I 


nCTURMKO 

roan 

ISSUCO 


DRAWING  NO. 


21021  + 


LOT  NO. 


MKOK     aVMBOL 

E25AY1M 


MAN'S 
NO. 


D      M 


opkh.  no. 


OPCNATION  NAMC 


ROUGH  &  FIN.  BORE 


ORIOINAL 
l>IKOC« 

isaucD 


MACHINE 

rOR  THIS 

OPERATION 


CYLINDER    COMPLETE 


ClCll 


MACHINE 
WORK'O  ON 
THISOPR'N 


MACHINE 

rOR  NEXT 

OPERATION 


NO.or  aooD  pc». 

f^    CLAIMED  PINIsn- 
ED  ON  THIS  JOB 


-ire- 

D6M 


•'■'0<»'»  NOTriNISHED 
8CWATCH    OUT    TMII^ 

IF   JOE    IS    riNISHEO 
_  SCRATCH    OUT     THIS 


TIME 


tw 


tw 


ROUTE 
SHEET 


NF 


PAY 
ROLL 


MAN'S 
COST 


MACHINE 


COST     NO. 


REL.       COST 


B   PREM.BASE 
TIMK  ALLOW  o| 


PRCM.  LIMIT 
C=AB  TIME 


TIMK  TAKEN 


INSPECTED 


MACH. 
COST 


MAN'S  JOB  CARD 


TIMK  SAVED 

E=C-D 


PREMIUM 
F=HE    T'ME 


EARNING  TIME 

G=D-f-F 


If 


MAN'S  RATE 


DAY  WORK 

OR 
PREMIUM 

PIO.  22 


SAMPLE  JOB  CARD  FORM   USED  BY   THE  FRANKLIN 
MANUFACTURING   COMPANY 


EARNINOS 


I  HAVE  INSPECTED  THC  FIRST  PIECES  OM  THIS  JOB 
AND  FOUND  THEM  O.K. 

rORM  A-1077 
SIGNED  BY 


DRAWING  NO. 


21021 


LOT  NO. 


MAN'S 
NAME 


MAN'S 
NO. 


M 


PIECE  SYMBOL 

E25AY1M 


OPER.  NO. 


OPERATION   NAMC 

ROUGH  &  FIN.  BORE 


CYLINDER    COMPLETE 


ORIGINAL 
PIECES 
ISSUED 


MACHINE 

FOR  THIS 

OPERATION 


MACHINE 
WORK'DON 
THISOPR'N 


MACHINE 

FOR  NEXT 

OPERATION 


105 

-58  V- 


ClCll 


-ITC- 
D6M 


DATE  DUE 

ON 
MACHINE 


MATE* 

RIAL 


DATA 


MEANS 


STAR- 
TED 


FIN* 
ISHEO 


MO. 


DAY 


HOUR 


FIG.  23 

SAMPLE  INSPECTOR'S  COUPON   AND  MOVE  TICKET   FORM  USED 
BY  THE   H.   H.   FRANKLIN   MANUFACTURING   COMPANY 


220 


EXAMPLES  Oi-  SCIEM'lEIC   MANAGEMENT 


nrruRNco 

FORM 
A-I077-A 

isaucD 


DRAWING  NO. 


21021 


MAN'S 
NAME 


LOT  NO. 


MAN'S 
NO. 


D       M 


ncCK  SYMBOL 

E25AY1M 


ORCR.  NO. 


OPCRATION    NAME 

ROUGH  Sc  FIN.  BORE 


CYLINDER    COMPLETE 


'Iff 


ORIGINAL 

Pieces 

inc 

DATE 

OUE 

MO. 

DAT 

HOUR 

ISSUED 

58V— 

REASONS 

ON 
MACNINt 

MACHINE 

FOR  THIS 

OPERATION 

ClCll 

PIECES 
SPOILED 

WT.                                MATERIAL 

MACHINE 
WORK'OON 
THISOPR'N 

^ITC 

PIECES 
DEFECTIVE 

MACHINE 

FOR  NEXT 

OPERATION 

D6M 

PIECES 
FOR 

REPAIR 

MARK   OFF   MACHINES 
NOT  WORKED    ON 

r 

OOOD 

FON- 

WRO'D 

MOVED 
TO 

MO. 

DAY 

HOUR 

REC'D 
BY 

ROUTE 
SHEET 

MOVED 
■V  1ST 

INSPECTED 
BY 

M< 
•Y 

}VES 
END 

1 

1 

FIG.  24 

FOREMAN'S  COUPON  FORM  USED  BY  THE  H.  H.  FRANKLIN 

MANUFACTURING  COMPANY 


PLANT    WITH    UNIFORM    MANUFACTURE 


221 


Prepare  master  sheet  for  Control  Board  schedule 
tape  as  follows : 

Lay  off  on  one-half  inch  (1/2  in.)  co-ordinate  pa- 
per as  many  one-half  inch  (%  in.)  spaces  as  there 
are  work  days  in  which  to  assemble  the  uniform 
schedule.  At  the  right  end  of  this  sheet,  the  begin- 
ning of  the  producing  period  is  the  zero  point. 

Erect  at  this  point  a  vertical  line  of  any  scale  to 
a  value,  which  represents  the  weekly  production 
of  all  models  at  the  beginning  of  the  period. 

At  the  extreme  left  of  this  sheet,  the  end  of  the 
producing  period,  erect  another  vertical  line  with 
the  same  scale  as  the  first  and  to  a  value,  which 
represents  the  weekly  production  of  all  models  at 
the  end  of  the  period.  If  these  lines  are  of  differ- 
ent length,  that  is,  if  the  rate  is  different,  connect 
the  tops  of  the  vertical  lines  by  a  curved  line  as 
specified  by  the  Production  Manager.  If  the  value 
of  the  two  vertical  lines  is  the  same,  i.e.,  if  rate 
of  production  does  not  change,  the  base  line  can 
be  used  on  which  to  lay  off  the  schedule. 

The  length  of  the  line  connecting  the  tops  of 
the  vertical  lines  will  represent  the  total  number 
of  cars  to  be  produced  over  the  period.  Beginning 
at  the  right  end  of  this  line,  lay  off  to  the  left  dis- 
tances of  500  cars  each  and  mark  the  line.  Drop 
a  vertical  line  to  the  base  line  from  each  of  these 
points.  This  will  divide  the  base  line  into  several 
divisions  of  500  cars  each,  but  if  the  line  is  much 
curved,  the  distances  will  be  uneven. 

Reduce  each  space  on  base  line  so  provided  ten 
per  cent.  (10^)  and  mark  back  on  the  base  line  to 
the  right  of  each  vertical  line  to  show  this  distance. 
The  remaining  ninety  per  cent.  (90^)  of  the  space 


222 


EXAMPLES  OP  SCIENTIFIC   MANAGEMENT 


PLANT   WITH    UNIFORM   MANUFACTURE 


i 


ill 


III! 


II  :ri: 


I 


will  then  be  divided  uniformly  into   (20)   equal 
parts. 

Then  if  a  reducing  factor  of  1/5  is  used:  the 
number  over  the  starting  point  of  the  first  division 
to  the  right  will  be  zero.    Over  the  next  one  5,  the 

next  10,  the  next  5 95,  which  will  be  over 

next  to  last  mark.    100  will  be  over  the  first  mark 

of  the  next  division,  and  then  105, 110, 115 

195.    This  will  be  continued  for  each  section.    The 

percentage  reduction  space  causes  an  increase  in 

the  rate  of  the  production  before  it,  so  that  any 

lack  of  accomplishment  in  a  period  can  be  made 

np  in  the  allowance  time  preceding  the  beginning 

of  the  succeeding  period. 

It  will  be  evident  from  inspection  of  this  diagram  that 

each  unit  number  on  the  tape  represents  but  one-fifth 

of  the  schedule,  and  that  any  number  of  cars  indicated 

by  the  tape  can  be  found  by  multiplying  by  five  the 

denominator  of  the  "Quantity  Block." 

If  the  quantity  is  small  over  a  long  period,  or  if  the 
schedule  for  some  parts  differs  from  others,  a  division 
of  50,  100,  200,  etc.,  may  be  used  in  place  of  500.    As 
stated  above,  the  number  of  cars  is  then  to  be  found  by 
multiplying  the  number  on  the  tape  by  1/2, 1,  2,  etc.,  and 
this  number  used  as  the  denominator  of  the  quantity 
block  ("Q"  block).    Such  parts  should  be  grouped  on  a 
board  under  a  common  tape,  which  has   lines   de- 
signed especially  for  that  board.    This  can  be  illus- 
trated as  follows :  If  schedule  contains  Touring,  Eun- 
about  and  Sedans  for  first  half  of  period,  all  com- 
mon  parts  will  be  grouped  on  as  many  boards  as 
required,  uncommon  Touring  on  another,  Eunabout 
on  another  and  Sedan  on  another.     On  "common" 
board  tapes  use  a  division  of  500  cars— "Q"  block  de- 


223 


nominator  =  5.   On  Touring  only,  a  division  of  300  cars 
—  'Q"  block  denominator  =  3.    On  Eunabout,  a  divi- 
sion of  100  cars— "Q'' block  denominator  =  1  and  on  Se- 
dan, a  division  of  50  cars— "Q"  block  denominator =i/>. 
As  the  relative  schedules  change,  the  period  time  on 
which  the  tape  is  laid  out  must  be  changed  and  new 
tapes  made  to  cover  period.    The  quantities  in  the  divi- 
sions, or  "Q"  block  denominator,  need  not  be  changed 
unless  the  quantities  are  greatly  changed.    ("Q"  block 
denominators  may  be  modified  by  percentage  factors 
for  car,  group,  division,  section  or  sub-section  so  as  to 
provide  for  standard  losses  or  diversions.    These  fac- 
tors will  always  be  specified  by  the  Production  Manager. 
If  these  factors  are  used,  schedules  will  complete  for 
different  parts  and  assemblies  at  different  tape  num- 
bers, and  schedule  cages  must  be  maintained  at  the 
requisition,  "ii!,"  block  for  each  part  and  assembly.    In 
this  cage  will  be  posted  the  quantity  (in  "board  units") 
of  parts  yet  to  be  ordered,  as  authorized  by  the  total 
schedule  of  the  part.    As  losses  and  diversions  are  cor- 
rected to  "board  units"  and  quantities  in  operation 
cages  are  reduced,  the  quantity  is  added  to  the  schedule 
cage.    When  new  orders  are  written,  the  quantity  in 
"board  units"  of  the  order  will  be  removed  from  the 
"schedule"  cage.    When  the  quantity  in  the  schedule 
cage  becomes  zero,  a  new  schedule  must  be  obtained. 

After  the  paper  layout  for  the  tape  is  completed,  this 
will  be  traced  on  one  and  one-quarter  inch  (I14  in.)  thin 
satin  ribbon,  the  numbers  being  stamped  with  a  rubber 
stamp  and  printers'  ink,  squeezed  on  a  glass  plate.  The 
one-inch  day  tape  and  the  one-inch  calendar  tape  will  be 
prepared  at  this  time  or  at  such  a  time  as  may  be 
convenient,  but  never  later  than  the  schedule  tape. 
The  space  interval  for  the  work  day  tape  and  the 

16 


224 


EXAMPLES   OP   SCIENTIFTC    MANAGEMENT 


PLANT   WITH   UNIFORM   MANUFACTURE 


If 


calendar  tape  will  always  bo  the  interval  of  the  layout 
sheet  for  the  schedule  tape,  i.e.,  one-half  inch  scale. 

THE   ERECTING   CLERK's   DUTIES   AND   INSTRUCTIONS 

Print  schedule  tapes  and  place  them  on  the  reels. 

Receive  blue  prints  from  Route  Division  and  write 
marker  for  print,  showing  name  and  drawing  number 
and  symbol,  if  on  the  drawing. 

Erect  a  black  strip  for  a  part  and  white  strip  for  an 
assembly  on  the  Control  Board,  located  in  groups  as 
specified  on  the  print  and  place  a  marker  at  extreme 
right-hand  end. 

Erect  (when  necessary)  a  strip  on  Control  Board  for 
single  stores  issue,  routed  into  the  part  preceding  at 
a  particular  operation,  to  include  a  requisition  cage,  due 
in  stores  cage  and  an  issue  cage.  For  completes  made 
of  two  kinds  of  raw  material,  issued  at  different  times, 
two  strips  are  to  be  used,  one  to  have  only  a  stores 
cage  for  the  material  last  issued  and  a  marker  to  indi- 
cate the  time  and  location  to  which  it  is  to  be  issued. 

Sign,  date,  and  return  print  to  Route  Division. 

Receive  print  subsequently. 

Write  additional  markers  as  indicated  by  the  print 
to  include : 

Quantity  block. 
Worked  material  block. 
Inspector's  block. 
Stores  block. 

Requisition  block  (Post  tape  number  correspond- 
ing to  first  finished  car  into  which  part  goes). 
Schedule  block. 
Pattern  or  lead  proof  block.     (Mark  with  tape 


225 


number  as  mentioned.)  Lead  proof  block  to  be 
erected  30  days  after  requisition  block. 

Tool  block  (Mark  with  tape  number). 

Marker  to  show  that  part  is  added  or  displaces 
or  supersedes  other  part.  (Do  not  remove  a  su- 
perseded part  or  assembly  strip  until  Order  Clerk 
releases  it.) 

Add  these  to  the  strip  as  indicated  by  the  parts  print 
and  Purchasing  Agent's  standard  "Purchased  Time 
List." 

Sign,  date  and  return  print  to  Route  Division. 

Receive  operation  sheet. 

Write  marker  to  show  number  of  operation  and  sym- 
bol of  machine  or  department. 

Erect  cages  according  to  the  operation  sheet  and 
make  any  re-arrangements  of  the  original  location  of 
strips  or  markers. 

For  each  assembly,  check  to  see  that  a  part  strip  is 
m  place  for  each  part,  as  shown  in  assembly  worked 
material  master  group  issue. 

^  Sign,  date  and  return  operation  sheet  to  Route  Divi- 
sion. 

Maintain  the  board  in  first-class  repair,  and  under  no 
circumstances  allow  any  markers,  type  faces  or  flags 
to  lie  on  floor  under  boards. 

Demand  written  instructions  for  any  changes,  if 
deemed  necessary. 

Maintain  a  supply  of  all  materials,  including  ribbons 
and  reel  cords. 

Provide  for  and  assist  with  photographic  mechanism. 

If  any  changes  of  operations  or  assemblies  cause 
changes  in  the  assembling  time,  the  part  strips  of  such 
assembly  will  be  moved  to  correspond,  and  the  Order 
Clerk  will  be  at  once  notified  in  writing  of  such  moves. 


m 

ff.jS; 


iil! 


226 


EXAMPLES   OP   SCIENTIFIC   MANAGEMENT 
ORDER  clerk's  DUTIES 


Adjust  schedule  tape  to  agree  to  schedule  time  as 
loJlows : 

Learn  from  the  Production  Manager  the  date  that 
cars  at  any  point  on  the  schedule  tape  are  due  to  Sales 
Department  and  set  the  calendar  tape  so  that  this  date 
IS  at  the  extreme  right-hand  end  of  the  Control  Board 
^  He  will  then  set  this  special  number  on  the  schedule 
tape  over  the  current  date  on  the  calendar  tape. 

Other  movements  of  the  tape  will  agree  to  the  tape 
on  master  board  in  the  Production  Manager's  office 
but  m  general  the  tape  will  move  one-half  inch  to  the' 
right  for  each  work  day. 

At  each  move  of  the  schedule  tape,  the  Order  Clerk 
will  inspect  each  cage  on  the  Control  Board  and  note 
Its  standing  with  respect  to  the  number  on  the  schedule 
tape  immediately  above  it. 

He  will  date  and  deliver  to  ihe  Eoute  File  Clerk: 

Single  stores  issues. 
Group  issues. 
Tags. 
Job  cards. 

Instructions  for  dating  paper:  Since  losses  by 
diverting  or  scrap  changes  the  schedule  of  parts, 
and  m  so  doing  changes  the  quantity  in  the  sta- 
tions, all  datings  should  be  conducted  as  follows  • 
Determine  the  board  unit  for  the  preceding  lot 
number  (in  general  this  will  be  the  last  number 
on  the  board,  but  in  case  of  re-dating  will  not), 
find  this  number  on  the  tape  and  place  the  cur- 
rent date  of  date  tape,  which  is  immediately  ad- 
jacent,  to  the  corresponding  cage.     If  board 


PLANT  WITH  UNIFORM  MANUFACTURE 


227 


strips  are  moved,  due  to  changes  in  time  of  oper- 
ations, or  if  cages  are  moved  due  to  the  same 
reason,  then  all  paper  affected  should  be  recalled 
for  new  dates. 

When  each  stores  issue  is  sent  for  apportion- 
ment, he  will  place  green  marker  in  requisition 
cage. 

When  a  call  is  made  upon  Eoute  File  Clerk  for 
requisition  and  job  cards  for  a  part,  he  will  place 
a  green  marker  in  first  operation  cage. 

When  requisition  is  dated  and  sent  to  Eoute  File 
Clerk,  the  Order  Clerk  will  transfer  green 
marker  from  first  operation  cage  to  storage 
cage.  This  will  be  removed  by  Posting  Clerk 
when  material  is  issued  from  Stores. 

If  any  operation  on  a  complete  depends  on  material 
or  a  worked  material  part,  stamp  last  operation  card 
of  the  part  to  show  drawing  number  of  complete  wait- 
ing for  it  and  on  the  operation  card  to  follow  for  the 
complete  stamp  ("do  not  post  until  part  No is  re- 
ceived at  Job  Station"). 

Single  stores  issues,  tags,  group  issues,  or  job  cards 
will  be  delivered  to  Eoute  File  Clerk  six  days  preceding 
exact  schedule  of  the  cage. 

Worked  material  issue  will  be  apportioned  and  de- 
livered two  days  before  date  due. 

^  For  work  done  on  standing  orders,  such  as  heat  treat- 
ing, nickel  plating  and  black  enameling,  job  cards  will 
be  written  for  each  operation  and  will  be  used  for  post- 
mg  the  Control  Boards  and  moving  lots.  When  the 
Despatch  Clerk  receives  notice  that  any  of  these  opera- 
tions on  any  lot  is  completed,  such  job  card  will  be 
marked  "i?'"  and  sent  to  the  Control  Boards  for  posting 


i 


f  'W 


II 


228  EXAMPLES   OP   SCIENTIFIC    MANAGEMENT 

and  the  move  coupon  to  the  move  man.  These  cards 
will  not  show  time,  and  are  not  to  be  sent  to  the  Cost 
Department. 

He  will  see  that  produced  quantities  do  not  get  too 
far  ahead  of  schedule,  and  from  time  to  time  will  con- 
fer with  the  Production  Manager  for  guidance. 

If  any  number  on  the  board  is  overrun  by  the  cor- 
responding number  on  the  schedule  tape,  he  will  obtain 
a  red  tag  from  Route  File  Clerk  and  place  red  marker 
m  cage.  He  will  place  any  such  marker  on  notice  from 
Despatch  Clerk. 

He  will  watch  the  quantity  under  "Diverted"  and 
"Scrapped,"  and  when  large  will  order  the  board  unit 
cage  standings  reduced  by  the  amount.  If  quantity  lost 
or  diverted  is  very  large,  all  papers  on  all  lots  in  proc- 
ess should  be  re-dated  to  advance  them.  This  is  also 
true  when  a  change  of  time  of  assembly  causes  notice 
of  shift  of  parts  by  Erecting  Clerk. 

He  will  receive  from  Stores,  Form  A 1138,  report 
when  any  material  is  scrapped  for  Stores  or  is  used 
on  any  other  order  other  than  those  to  which  it  has  been 
apportioned.  When  this  depletion  amounts  to  a  frac- 
tion  of  a  lot  size,  the  stores  cage  on  the  Control  Boards 
must  be  reduced  a  full  lot  size. 

When  a  part  or  assembly  becomes  obsolete,  he  will 
record  the  number  of  pieces  so  obsoleted  on  Form  (— ) 
and  turn  it  over  to  the  Route  File  Clerk  for  notifica- 
tion to  Service  Department  and  for  file.  If  an  assem- 
bly becomes  obsolete  and  its  strip  is  to  be  removed 
from  the  board,  and  pieces  of  assembly  are  standing 
m  Worked  Materials  they  will  be  treated  as  if  diverted, 
and  the  diverted  cage  of  each  old  part,  which  contin- 
ues in  current  production,  will  be  posted  with  the 
number  of  pieces  so  diverted.    If  the  assembly  is  after- 


PLANT    WITH    UNIFORM    MANUFACTURE 


229 


ward  scrapped  and  the  pieces  re-claimed,  the  number 
placed  in  stock  will  be  removed  from  the  diverted  cage 
and  added  to  the  Worked  Material  cage  for  each  part. 
Such  postings  will  be  made  by  the  Posting  Clerk  from 
written  notices  of  the  Order  Clerk. 

He  will  check  Worked  Material  tags  to  cages  and 
send  to  Route  File  Clerk  for  correction  or  file. 

His  prime  responsibility  will  be  to  start  all  opera- 
tions, including  requisitions,  etc.,  on  schedule  time. 

He  is  to  notify  in  writing,  by  standard  forms,  or  oth- 
erwise, those  persons  who  are  responsible  for  the  par- 
ticular item  considered. 

He  should  feel  the  responsibility  of  keeping  the  shop 
attainment  up  to  schedule. 


ROUTE  FILE  CLERK's  DUTIES 

He  will  receive  all  paper  from  the  Order  Clerk  and 
distribute  it  to  the  proper  place. 

He  will  receive  all  paper  from  the  despatch  racks  and 
distribute  it  to  the  proper  place  at  the  boards. 

He  will  post  in  a  ledger  all  lots  started  or  finished, 
by  drawing  number,  lot  number  and  quantity.  Also 
show  special  apportionments  as  sundry,  etc.,  and  any 
notes  about  particular  lots  that  are  deemed  necessary. 

He  will   supervise   Despatch   Clerks   and   Postin 
Clerks. 

Immediately  on  receipt  from  Order  Clerk,  he  will 
send  stores  issues  to  Balance  Stores  Ledgers  for  ap- 
portionment. 

He  will  receive  apportioned  paper  and,  after  posting, 
will  file. 

He  will  send  copy  of  stores  issues  to  Cost  Depart- 
ment, and  on  receipt  will  file. 


g 


230 


EXAMPLES   OF  SCIENTIFIC   MANAGEMENT 


II 


M 


'  t 


He  will  post  all  receipts  of  materials  against  appor- 
tioned paper  and  pass  receiving  ticket  to  the  Posting 
Clerks  to  post  on  Control  Boards  in  stores  cages. 

tie  will  apportion  delayed  parts  in  Worked  Material 
group  issues  upon  notice  of  receipt  from  Posting  Clerk 

He  will  maintain  route  sheets  for  job  orders  and 
prepare  move  tickets  for  all  such  jobs 

He  will  secure  job  cards  for  all  jobs  from  route  de- 
partment file. 

The  paper  used  by  the  Route  File  Clerk  will  be  han- 
dled as  follows:  The  stores  issue  will  be  in  three  cop- 
ies, and  will  combine  material  and  move  tickets  within 
the  same  form. 

When  the  paper  has  be6n  dated  and  a  green  marker 
placed  by  the  Order  Clerk  and  turned  over  to  the  Koute 
J  lie  Clerk,  he  will  send  the  face  copy  to  the  stores 
ledger  for  apportionment,  allowing  them  twelve  hours 
m  which  to  return  it. 

The  face  copy  will  then  be  delivered  to  the  Posting 
Clerk  for  posting  "Stores  Cage"  and  to  indicate  re- 
moyal  of  green  requisition  marker.  The  Posting  Clerk 
will  be  required  to  return  this  paper  within  twelve 
hours  to  the  Eoute  File  Clerk  for  file. 

In  case  the  stores  apportionment  does  not  show  full 
quantity  of  stock  on  hand,  such  receipt  of  the  material 
will  be  posted  by  the  Route  File  Clerk  to  the  face  copy 
from  the  Stores  Receiving  Ticket  and  be  passed  to  the 
Posting  Clerk  for  "Stores  Cage." 

The  Stores  Receiving  Ticket  in  all  cases  will  be 
marked  by  Stores  Clerk  with  orders  waiting  for  ma 
terial,  and  will  show  the  drawing  number,  or  symbol, 
lot  number  and  quantity,  which  are  covered  by  the 
receipt.  ^ 

At  the  time  of  sending  face  copy  to  Stores  Ledgers, 


PLANT    WITH    UNIFORM    MANUFACTURE 


231 


the  second  copy  will  be  sent  to  the  Cost  Department 
as  a  notification  for  them  to  open  orders.  The  Cost 
Department  will  return  this  paper  within  twelve  hours 
for  file  to  the  Route  File  Clerk. 

The  third  copy  will  be  placed  in  tickler  under  date 
of  stores  due,  and  will  be  used  to  start  lot. 

One  day  before  date  material  is  to  be  issued  from 
the  stock  room,  the  three  copies  of  the  group  issue  will 
be  sent  to  the  stock  room.  If  the  material  cannot  start, 
a  red  tag  will  be  written  and  filed  in  tickler  against 
third  copy  and  notice  sent  to  the  Order  Clerk,  who  will 
mark  first  operation  cage  under  same  plan  as  for  job 
cards. 

If  a  Worked  Material  group  cannot  start  due  to 
shortage  of  part  or  parts,  a  red  marker  will  be  placed 
in  Worked  Material  cage  of  parts  by  Order  Clerk,  and 
when  parts  are  received,  the  Route  File  Clerk  will  be 
notified  and  the  red  marker  removed. 

After  delivery  and  receipt  by  foreman,  the  Stores 
Department  will  return  the  face  copy  of  Stores  to  the 
Stores  Ledgers,  Worked  Material  to  Route  File  Clerk, 
and  both  to  Cost  Department  to  show  the  charge  out 
of  stores. 

They  will  send  the  second  copy  to  the  Route  File 
Clerk  and  Posting  Clerk,  from  which  will  be  posted  the 
move  to  the  first  machine.  If  assemblies  require  both 
Stores  and  Worked  Material  group  issues,  they  will  be 
issued  at  the  same  time.  Assembly  blocks  (R)  will 
show  Stores  group  or  Worked  Material  group,  one  or 
both,  as  they  occur.  If  there  is  a  group  of  each,  and 
one  is  up  to  the  Board,  a  blue  marker  is  placed  in  first 
operation  cage,  but  the  quantity  is  not  posted.  When 
the  second  one  reaches  the  Board,  the  blue  marker  is 
removed  and  the  quantity  posted. 


232 


EXAMPLES   OF   SCIENTIFIC    MANAGEMENT 


The  third  copy  goes  to  the  despatch  rack  with  the 
goods,  or  on  those  floors  not  having  a  despatch  rack, 
goes  to  the  foreman  and  becomes  his  property. 

Jobs  up  to  machines,  except  the  first  operation,  will 
be  posted  from  the  finished  (F)  job  card  of  the  par- 
ticular lot  and  previous  operation. 

The  job  cards  must  bje  returned  the  same  day  to 
Despatch  Clerks  to  arrange  for  the  Cost  Department 
and  pay  roll. 

When  a  job  card  passes  from  one  department  to  an- 
other or  to  Worked  Materials,  after  posting,  the  cage 
receiving  will  be  marked  with  a  blue  marker,  which 
marker  will  be  removed  by  Posting  Clerk  on  receipt 
of  the  combined  Inspector's  Coupon  and  Move  Ticket. 

Moves  into  worked  materials  will  be  posted  in  the 
same  way. 

Spoiled  and  defective  work  will  be  posted  from  the 
Move  to  Worked  Material  tickets. 

The  Move  ticket  into  Worked  Materials  will,  after 
going  to  the  Board  (and  if  part  was  short,  after  appor- 
tionment to  Worked  Material  group  issue)  will  be  sent 
to  the  Cost  Department  as  instructions  to  close  the 
order.  It  will  be  returned  by  the  Cost  Department  in- 
side of  twenty-four  hours  for  permanent  file. 

Tool  and  pattern  movements  will  be  posted  from  the 
tool  and  pattern  order. 

If  the  Order  Clerk  finds  any  discrepancies  between 
the  stock  tags  and  the  Worked  Material  cages,  these 
will  be  taken  by  the  Route  File  Clerk,  investigated  and 
any  discrepancies  existing  will  be  adjusted  and  marked 
on  the  tag  from  which  the  Posting  Clerks  will  change 
the  Board. 

Any  corrections  or  alterations  to  the  data  on  the 
Board  will  go  through  the  Route  File  Clerk  in  writing. 


PLANT   WITH    UNIFORM   MANUFACTURE 


233 


and  after  approval  by  him  will  be  posted  by  the  Post- 
ing Clerk. 

POSTING  clerks'  DUTIES 

They  will  receive  their  instructions  from  the  Route 
File  Clerk. 

They  will  receive  from  the  Route  File  Clerk  any 
paper,  which  is  to  be  posted  to  the  Control  Boards. 
As  far  as  possible  this  will  be  taken  from  baskets 
attached  to  the  Control  Board. 

They  w^ill  sort  and  classify  their  paper  to  the  differ- 
ent Control  Boards,  if  this  has  not  been  done  pre- 
viously by  the  Route  File  Clerk. 

They  will  find  the  part  and  operations  considered 
and  from  the  numbers  standing  at  the  operation  moved 
from  and  the  operation  moved  to  will  calculate  the 
new  quantities  with  a  Munroe  Calculator  and  post  the 

cages. 

They  should  calculate  to  a  decimal  of  a  unit  and 
should  watch  to  see  that  if  the  moves  w^ork  out  to  a 
decimal  that  they  are  not  posted  all  in  one  way. 

All  quantities  except  Worked  Material  diverted  and 
scrapped  will  be  divided  by  the  denominator  on  "Q" 
block  (these  exceptions  will  be  posted  to  show  the  exact 

quantity). 

Wlienever  an  out  move  is  made  from  Worked  Mate- 
rial by  group  issue  or  single  issue,  whether  current 
production  or  diversion,  the  quantity  on  hand  in 
Worked  Material  cage  will  be  reduced  by  the  amount 

taken  out. 

When  any  assembly  is  diverted  (also  see  obsoleted 
under  Order  Clerk)  the  "Diverted"  cage  for  such  as- 
sembly will  be  posted  with  the  number  of  such  pieces. 

When  such  assemblies  as  Diverted  are  to  be  ad- 


INTENTIONAL  SECOND  EXPOSURE 


i 


^  r 


t- 


232 


EXAMPLES    OF   SCIENTIFIC    MANAGEMENT 


PLANT   WITH   UNIFORM   MANUFACTURE 


i 


The  third  copy  goes  to  the  despatch  rack  with  the 
goods,  or  on  those  floors  not  having  a  despatch  rack, 
goes  to  the  foreman  and  becomes  his  property. 

Jobs  up  to  machines,  except  the  first  operation,  will 
be  posted  from  the  finished  (F)  job  card  of  the  par- 
ticular lot  and  previous  operation. 

The  job  cards  must  bje  returned  the  same  day  to 
Despatch  Clerks  to  arrange  for  the  Cost  Department 
and  pay  roll. 

When  a  job  card  passes  from  one  department  to  an- 
other or  to  Worked  Materials,  after  posting,  the  cage 
receiving  will  be  marked  with  a  blue  marker,  which 
marker  will  be  removed  by  Posting  Clerk  on  receipt 
of  the  combined  Inspector's  Coupon  and  Move  Ticket. 

Moves  into  worked  materials  will  be  posted  in  the 
same  way. 

Spoiled  and  defective  work  will  be  posted  from  the 
Move  to  Worked  Material  tickets. 

The  Move  ticket  into  Worked  Materials  will,  after 
going  to  the  Board  (and  if  part  was  short,  after  appor- 
tionment to  Worked  Material  group  issue)  will  be  sent 
to  the  Cost  Department  as  instructions  to  close  the 
order.  It  will  be  returned  by  the  Cost  Department  in- 
side of  twenty-four  hours  for  permanent  file. 

Tool  and  pattern  movements  will  be  posted  from  the 
tool  and  pattern  order. 

If  the  Order  Clerk  finds  any  discrepancies  between 
the  stock  tags  and  the  Worked  Material  cages,  these 
will  be  taken  by  the  Eoute  File  Clerk,  investigated  and 
any  discrepancies  existing  will  be  adjusted  and  marked 
on  the  tag  from  which  the  Posting  Clerks  will  change 
the  Board. 

Any  corrections  or  alterations  to  the  data  on  the 
Board  will  go  through  the  Route  File  Clerk  in  writing. 


233 


\  \ 


and  after  approval  by  him  will  be  posted  by  the  Post- 
ing Clerk. 

POSTING  clerks'  DUTIES 

They  will  receive  their  instructions  from  the  Route 
File  Clerk. 

They  will  receive  from  the  Route  File  Clerk  any 
paper,  which  is  to  be  posted  to  the  Control  Boards. 
As  far  as  possible  this  will  be  taken  from  baskets 
attached  to  the  Control  Board. 

They  will  sort  and  classify  their  paper  to  the  differ- 
ent Control  Boards,  if  this  has  not  been  done  pre- 
viously by  the  Eoute  File  Clerk. 

They  will  find  the  part  and  operations  considered 
and  from  the  numbers  standing  at  the  operation  moved 
from  and  the  operation  moved  to  will  calculate  the 
new  quantities  with  a  Munroe  Calculator  and  post  the 
cages. 

They  should  calculate  to  a  decimal  of  a  unit  and 
should  watch  to  see  that  if  the  moves  w^ork  out  to  a 
decimal  that  they  are  not  posted  all  in  one  way. 

All  quantities  except  Worked  Material  diverted  and 
scrapped  will  be  divided  by  the  denominator  on  "Q" 
block  (these  exceptions  will  be  posted  to  show  the  exact 
quantity). 

Wlienever  an  out  move  is  made  from  Worked  Mate- 
rial by  group  issue  or  single  issue,  whether  current 
production  or  diversion,  the  quantity  on  hand  in 
Worked  Material  cage  will  be  reduced  by  the  amount 
taken  out. 

When  any  assembly  is  diverted  (also  see  obsoleted 
under  Order  Clerk)  the  "Diverted"  cage  for  such  as- 
sembly will  be  posted  with  the  number  of  such  pieces. 

When  such  assemblies  as  Diverted  are  to  be  ad- 


234 


EXAMPLES   OP  SCIENTIFIC   MANAGEMENT 


PLANT   WITH   UNIFORM   MANUFACTUEE 


235 


justed,  reduce  Diverted  to  Board  Units  and  subtract 
all  assembly  Board  Unit  cages  except  Stores.  At  the 
same  time  post  in  Diverted  cage  of  each  part  contained 
in  the  assembly  the  number  of  pieces  so  diverted. 

In  the  Stores  cage  will  be  posted  in  quantities  of 
the  Board  Unit  (the  Board  Unit  to  mean  any  quantity 
divided  by  the  denominator  of  "Q"  block)  such  quan- 
tity as  is  shown  to  be  covered  by  Apportionment.  The 
Stores  cage  shows  what  material  is  in  stock  that  has 
been  apportioned  against  the  particular  part. 

When  correcting  Worked  Material  tags  to  Boards,  if 
tag  shows  less  than  quantity  in  Worked  Material  cage, 
reduce  pieces  in  Worked  Material  cages  to  agree  to 
tag,  and  post  in  "Diverted"  cage  the  amount  of  differ- 
ence. If  tag  shows  more,  add  to  Worked  Material  cage 
and  reduce  any  pieces  in  Diverted  or  Scrapped  cages 
a  like  amount ;  if  no  quantity  is  shown  in  "Diverted"  or 
Scrap  cages,  divide  by  "Q"  denominator  and  add  to  all 
previous  cages  except  "Stores"  cage  and  subtract  from* 
Schedule  cage. 

The  Posting  Clerks  will  be  held  accountable  for  the 
accuracy  of  all  records  on  the  Boards,  and  no  one  will 
be  allowed  to  move  or  change  any  such  records  without 
a  complete  understanding  or  arrangement  with  the 
Posting  Clerk. 

The  Posting  Clerks  will  assist  as  far  as  possible  to 
bring  to  attention  any  general  errors  existing  in  the 
Board  or  any  discrepancies  that  they  may  notice  be- 
tween the  tape  and  any  corresponding  cages. 

Whenever  posting  to  a  cage  that  has  a  red  marker 
when  the  paper  is  marked  with  a  red  cross,  such  red 
marker  must  be  removed.  In  all  other  cases,  the  red 
marker  will  be  replaced.  If  red  marker  stands  in 
Worked  Material  cage,  when  a  full  lot  of  parts  move 


in,  the  Eoute  File  Clerk  will  be  at  once  notified  by; 
Move  ticket  and  the  red  marker  removed. 

Green  marker  will  be  removed  when  apportioned 
stores  paper  is  posted. 

Blue  marker  will  be  added  to  receiving  cage  when 
(F)  card  shows  changed  department  and  will  be  re- 
moved when  Move  ticket  is  received. 

Any  work  done  in  the  factory  that  is  not  convention- 
ally posted  on  the  Control  Boards  must  be  carried  out 
by  route  sheets. 

DESPATCH  clerks'  DUTIES 

When  job  cards  are  started  by  the  Order  Clerk  they 
will  be  posted  in  the  despatch  boxes. 

When  the  material  is  received  at  the  machine,  in  the 
second  compartment  of  the  machine  box  will  be  placed 
the  job  card  and  inspector's  coupon,  while  the  fore- 
man's coupon  will  be  sent  to  him.  All  other  jobs  on 
that  part  for  that  lot  will  be  posted  at  the  proper  ma- 
chines in  the  third  compartment. 

On  giving  out  job  cards,  the  workman's  name,  clock 
number  and  the  machine  on  which  he  actually  is  to  do 
work  will  be  marked. 

The  card  will  then  be  time  stamped  and  handed  to 
the  workman  or  will  be  put  in  the  workman's  attendance 

racks. 

The  attendance  racks  will  be  the  responsibility  of  the 

Despatch  Clerks. 

They  will  be  filled  with  job  cards  before  the  closing 

at  night. 

They  will  be  unlocked  by  the  watchman  in  the  morn- 
ing and  will  be  locked  by  the  Despatch  Clerks  at  7 
o'clock,  unlocked  by  them  at  12  o'clock,  locked  at  1 
o'clock  and  unlocked  at  5  o'clock. 


) 


236 


EXAMPLES   OF   SCIENTIFIC    MANAGEMENT 


PLANT   WITH    UNIFORM    MANUFACTURE 


'1  i 


All  job  cards  will  be  removed  that  remaiii  after  time 
of  locking. 

Workmen  not  in  on  time  will  be  obliged  to  report  to 
the  Despatch  Office  for  a  job. 

They  will  be  required  to  sign  a  late  or  absent  card, 
which  will  account  for  the  time  so  lost. 

The  job  cards  in  machine  racks  will  be  arranged  in 
the  second  compartment  in  the  order  of  their  date  and 
given  out  in  this  order;  in  the  third  compartment,  in 
order  of  their  drawing  number ;  and  they  must  be  main- 
tained accurately  this  way. 

No  exceptions  to  this  will  be  allowed  even  tempo- 
rarily without  the  Production  Manager's  authority. 

If  exception  must  be  taken,  consult  at  once  with  the 
Route  File  Clerk  or  mark  with  a  slip  of  paper  show- 
ing that  such  irregularity  is  known  to  the  Despatch 
Clerks. 

All  (F)  job  cards  must  be  delivered  to  the  Route  File 
Clerk  for  Posting  Clerks  and  when  returned  must, 
with  all  other  unfinished  cards,  be  accounted  for  and 
arranged  for  Cost  Department. 

When  an  operation  on  any  lot  cannot  be  put  on  ma- 
chine on  date,  put  a  red  tag  on  that  lot.  When  the 
lot  gets  up  to  schedule  date  again,  remove  the  tag. 
If  a  tag  placed  is  the  only  tag  on  the  operation,  report 
at  once  in  writing  the  placing  of  that  tag  to  the  Con- 
trol Board.  This  report  to  show  drawing  and  operation 
number.  If,  however,  another  lot  of  the  same  part  on 
that  operation  already  bears  a  tag  and  has  been  re- 
ported to  the  Board,  do  not  report  the  tagging  of  any 
later  lot;  in  other  words,  the  report  of  red  tags  sent 
to  the  Board  is  to  be  a  report  of  operations  tagged 
rather  than  lots  tagged. 

When  a  tag  is  removed  from  a  lot,  if  other  tags  still 


237 


remain  on  that  operation,  simply  destroy  the  tag  re- 
moved, but  if  the  tag  removed  is  the  last  tag  on  that 
operation,  mark  the  {F)  job  card  with  red  cross. 

The  Despatch  Clerks  must  give  very  quick  and 
prompt  service  and  accord  every  possible  courtesy  to 
the  workmen.  If  the  workmen  claim  that  the  job  can- 
not be  handled,  refer  the  workmen  at  once  to  the  fore- 
man. 

They  will  post  any  route  sheets  for  jobs,  which  are 
operated  on  special  orders,  if  in  the  discretion  of  the 
Route  File  Clerk  it  is  more  economical  for  them  to  do 
so  than  for  the  Route  File  Clerk  to  do  it. 

They  will  receive  cards  from  the  workmen  and  time 
stamp  them. 

As  one  job  is  finished  on  one  machine,  they  will 
move  up  the  next  job  in  the  next  machine  rack  from 
the  information  on  the  card. 

They  will  time  stamp  the  inspector's  coupon  when  the 
job  is  started  and  when  it  is  finished. 

They  will  issue  the  coupon  as  a  Move  between  the 
machines  or  departments. 

They  will  receive  these  tickets  after  moving  and  de- 
liver to  the  Route  File  Clerk. 

They  will  make  up  the  job  cards  and  account  for  all 
hours  of  attendance. 

They  will  time  and  account  for  all  late  and  absence 
slips. 

INSPECTOR  OF  RECORDS'  DUTIES 

The  duties  of  the  Inspector  will  be  to  verify  that  all 
of  the  clerical  work  required  in  the  above  is  carried  out 
with  exactness  and  he  will  be  looked  to  for  final  respon- 
sibility as  to  the  general  accuracy  of  the  conduct  of  the 
above  work. 


238 


EXAMPLES   OP  SCIENTIFIC   MANAGEMENT 


i  I 


He  will  record  his  findings,  place  the  responsibility 
and  report  to  the  Production  Manager  for  all  errors 
found.  He  will  bring  such  errors  at  once  to  the  atten- 
tion of  the  responsible  person  so  that  they  may  be 
corrected.    All  reports  must  be  in  writing. 

To  check  standings  proceed  as  follows: 

Multiply  any  value  in  "Board  Units"  by  denomina- 
tor of  *'Q''  block.  This  will  give  pieces.  Add  or  sub- 
tract any  other  pieces  desired  and  compare  with  other 
values.  Example:  Check  part  into  Worked  Material 
with  outgoing  assembly.  (Note :  Other  assemblies  may 
take  this  part.) 

Multiply  first  figures  in  assembly  cage  by  denomi- 
nator of  "0"  block  for  this  assembly.  Multiply  this 
quantity  by  the  number  of  the  part  (which  is  being 
compared)  per  assembly.  Add  pieces  in  Worked  Mate- 
rial and  pieces  Scrapped  and  Diverted  for  the  part  to 
this  quantity.  Then  multiply  figure  in  D81M  cage  of 
part  by  the  denominator  on  "Q"  block  for  the  part. 
This  quantity  should  equal  the  first  quantity. 


INDEX 


Absence,  97 

Absences  and  tardiness,  compara- 
tive, 133 
Acquired  knowledge,  reward  for,  91 
Adaptability  of  Taylor  System,  129 
Advancing  or  retarding  work  by  the 

Control  Boards,  74 
Advantages  of  centralized  despatch 
room,  76 
the  Taylor  System,  13 
Allowance  for  years  of  service,  92 
Allowance  time,  41 

in  Small  Parts  Factory,  205 
Analysis  of  the  Franklin  activities 
into  classes  of  manufacture,  127 
Assembly  blocks,  231 
Automobile  manufacture,  4 
Average  hourly   wage,   1908-1917, 
150 

Barth's  report,  Carl  G.,  6 
Base  rate,  fundamental,  88,  169 
Base  rates,  work  and  department, 

171 
Basis  of  Control  Boards,  41 
Benefit,  156 

division  of,  156 

increased,  160 
Board  units,  223 

Building  and  equipment  section,  112 
Bulletin  board  for  Repair  Shop,  194 
Burden,  daily,  123 

machine-hoiu",  122 

(machine)  books,  59 
Business  conditions  in  1908,  1 

Calender  tape,  work-day,  67 
Car,  classification  of,  47 
Centralization  of  control,  59 
Centralized  despatch  room,  advan- 
tages of,  76 
Change  in  product,  149 
of  operations,  frequency  of,  125 


Changes  in  Product  and  Meth- 
ods, 115-129 
Certainty  of  control,  118 
Classes  of  manufacture,  126 
Deliveries  determined,  116 
Elimination  of  p)oor  work,  118 
Improved  inspection,  116,  118 
Improvement  and  uniformity  of 

product,  119 
Improvements  in  manufacturing 

methods,  119 
Machine-burden  hours,  122 
Old  methods  of  supervising  manu- 
facture, 120 
SimpUfication  of  product,  116 
Stores  delivery,  117 
Time    requirements    established, 
116 
Changes  in  purchasing  department, 

142 
Changes  Which  Have  Affected 
THE  Men,  130-146 
Contentment  and  interest,  136 
Increased  earnings,  134 
Increase<l  knowledge  of  shop  prac- 
tices and  office  methods,  137 
New  methods,  141 
Old  methods  reviewed,  141 
Permanency  of  employment,  133 
Reduced  turnover  of  labor,  130 
Safety  appliances,  138 
Classes  of  manufacture,  126 

dividing  an  industry  into,  127 
Classification  and  Standardiza- 
tion, 31-46 
Classification  of  accounts,  46 
machines,  38 
materials,  35 
methods,  35 
product,  33 
First  standards,  31 
Standardization     of    mechanical 
methods,  40 
tools,  42 


17 


239 


240 


INDEX 


INDEX 


241 


i  > 

I 


Classification  of  car,  47 

engine,  48 
machines,  38 
materials,  35 
Classification  of  methods,  35 
product,  33 
sponges,  52 
variety  stores,  51 
Classification  of  workers  in  Repair 

Shop,  according  to  skill,  192 
Classification  in  Small  Parts  Fac- 
tory, machines,  205 
workers,  205 
Clearing  house,  main,  76 
Clothing    (workingman's)   average, 

172 
Common  Sense  Management,  31 
Communitv,  selection  of  industries 

for,  131 
Company's  investment,  157 
Comparative  statement  of  cost  and 

earnings,  174 
Conditions  in  Repair  Shop  prior  to 
introduction  of  Scientific  Man- 
agement, 190 
Conduct  reward,  102 
Contentment  and  interest  in  work, 

136 
Control,  187 

centralization  of,  59 
certainty  of,  118 
establishing,  47 
Control  Board,  66 
detail,  73 
economies,  75 
equipment,  67 
erection,  70 
functions,  75 
movable  feature,  72 
pennanency  of  set-up,  74 
schedule  tape,  preparation  of,  221 
Control  Boards  in  Plant  with  Uni- 
form Manufacture,  210. 
Co-operation  and  conduct,  reward 

for,  102 
Co-ordination  of  all  factors  in  Plant 
with  Uniform  Manufacture,  209 
Correction  for  spoiled  work,  98 
Cost    and    earnings,    comparative 

statement  of,  174 
Cost  of  employment,  91 

living,  relative,  172 
training  a  worker,  91 
Court  of  appeal,  81 
Crest  of  productivity,  108 


Daily  burden,  123 

task,  123 
Dating  paper,  instructions  for,  226 
Dead  stock  accounts,  143 
Decrease  in  production  cost  under 

Scientific  Management,  153 
Decreased  efficiency  of  workers  on 

new  product,  temp)orary,  151 
Decreased  work  hours,  134 
Deliveries  determined,  116 
Departmental  discipUnary  authori- 
ty, 80 
Despatch,  187 
Clerk's  duties,  235 
racks  for  Repair  Shop,  195 
racks  for  Small  Parts  Factory,  203 
room,  59,  76 

rooms  (former  arrangement),  76 
section,  113 
tubes  (pneumatic),  76 
tube  system,  77 
Despatching  shop  orders,  procedure, 

60 
Detail  of  Control  Board,  73 
Disadvantages    of    individual    de- 
spatch rooms,  76 
Discharges,  80 

and  disciplinary  measures,  81 
Dividing  an  industry  into  classes  of 

manufacture,  127 
Division  of  "Benefits,"  156 
Drawing  requirements,  49 
Dual  responsibility  in  1908,  3 
Failure  to  keej)  dates,  3 
Fluctuations    in    labor    employ- 
ment, 3 
Labor  turnover,  4 
Lack  of  co-operation,  3 
Unsuitable  equipment,  3 

Earnings,  comparative  statement  of, 

174 
Economical  stores  deUvery,  117 
Effect  of  increased  investment,  158 
Efficiency  of  workers  on  new  pro- 
duct,  temporary   decrease   in, 
151 
Elimination  of  poor  work,  118 
Employment,  permanency  of,  133 
Employment  Manager's  authority, 

oU 
Employment   and   Rate   Fixing, 
79-108 
Absences  and  tardiness,  97 


Deductions  for  lates,  absences  and 

spoiled  work,  97 
Discharges  and  disciplinary  meas- 
ures, 81 
Employment  Manager's  authori- 
ty, 80 
Fixed  charges  rate,  92 
Full  profit  for  managerial  effort, 

83 
Fundamental  base  rate,  88 
Penalties  for  spoiled  work,  98 
Perc5entage     allowance     for     in- 
creased cost  of  hving,  89 
Premiums  earned,  94 
Rate  formula,  84 
Recognition  for  co-operation  and 

conduct,  102 
Recompense  for  skill  in  more  than 

one  mechanical  process,  90 
Recompense  for  task  and  straight 

time  work,  100 
Responsibilities  of  the   manage- 
ment and  of  workers,  83 
Retainer    for    task    worker    on 

straight  time  work,  83 
Reward  for  years  of    continuous 

service,  92 
Selection  of  workmen,  80 
Standard  premium  task  time,  97 
Employment  of  workmen,  80 

section,  112 
Engine,  classification  of,  48 
Engineering  Department's  duties  in 
Plant  with  Uniform  Manufac- 
ture, 212 
Engineering  division,  110 
Engineering    Inspection    duties    in 
Plant  with  Uniform  Manufac- 
ture, 212 
Equity  ratio,  156 
legitimate  causes  for  change  in, 
157 
Erecting  Clerk's  duties  in  Plant  with 

Uniform  Manufacture,  224 
Establishing  Control,  47-62 
Centralization  of  control,  59 
Classification,  47 
of  enj^e,  48 
of  variety  stores,  51 
Despatch  room,  59 
Machine  burden  books,  59 
Routing  of  work  and  materials,  57 
Standardization  of  factory   ma- 
chinery, and  fixtures,  57 


Standardization  of  purchase  times, 

oo 
Storerooms,  54 
Store  ledgers,  54 
Symbols,  49 
Example  in  Control  Board  erection, 

70 
Examples  op  ScrENTipic  Manage- 
ment, 185-189 
Plant    with    Uniform    Manufac- 
ture, 208 
Repair  Shop,  190 
Small  Parts  Factory,  199 
Executive  Department,  113 
Despatch  section,  113 
Inspection  section,  113 
Produce  section,  113 
Store  and  transport  section,  114 
Expansion  in  1916,  161 
Extra  recompense  for  task  worker 

when  straight  time  work,  100 
Extracts  from  Doctor  Taylor's  writ- 
ings, 26 

Factory  Conditions  in  1908,  1-8 

Barth's  (Carl  G.)  report,  6 

Business  conditions,  1 

Factory  management,  2 

Foreman's  responsibilities,  2 

Problem  of  automobile  manufao- 
tiu-e,  4 

Production,  2 

Results  of  dual  responsibility,  3 

Size  of  plant,  1 

Stock  chasers,  2 

Workman's  responsibihties,  2 
Factory  machinery,  standardization 

of,  57 
Factory  management  in  1908,  2 
Family,  average  workingman's,  172 
First  standards,  31 
Fitness  for  a  task,  137 
Fixed  charge  cost,  labor  and,  104 
Fixed  charges  rate,  92 
Foreman's     responsibilities     under 
present  system,  61 

Scientific  Management,  10 
Forms,  changes  in,  127 
purpose  of,  127 
Frequency  of  change  of  operation, 
125  * 

Fuel  for  worker's  family,  172- 
Functions  of  Control  Boards,  75 
Fundamental  Base  Rate,  16^171 
Fundamental  base  rate,  88 


If! 


242 


INDEX 


INDEX 


243 


Groundwork  of  Scientific  Manage- 
ment, 82 
Group  issue  papers,  231 
Growth  and  activities,  147 

Hours,  decreased  work,  134 

Illumination,  improvements  due  to, 

139 
Imposing  penalties,  84 
Improved  inspection,  118 
inspection  methods,  116 
Improvement    and    uniformity    in 

product,  119 
Improvements    in    manufacturmg 

methods,  119 
Increase  in  living  cost,  percentage 

of,  89 
Increased  "benefits,"  160 
Increased  investment,  effect  of,  158 
production  and  employment  under 

Scientific  Management,  148 
wages,  134 
Individual  despatch  rooms,  disad- 
vantages of,  76 
Information  for  erection  of  Control 

Boards,  71 
Inspection,  improved,  118 
parts  in  process,  113 
worked  material,  110 
Inspection  coupon,  60 
Inspection  in  Repair  Shop,  196 

Small  Parts  Factory,  203 
Inspection  methods,  improved,  116 

section,  113  ,     .     .    t^i     x 

Inspector  of  Records'  duties  in  Plant 

with  Uniform  Manufacture,  237 
Inspector's  coupon  used  by  the  H. 

H.  Franklin  Mfg.  Co.,  219 
Inspector's  ticket  for  Repair  Shop, 

194 

Installations  of  Scientific  Manage- 
ment, 9 

Instruction  cards,  60,  136 

Instruction  in  processes,  91 

Instructions  for  dating  paper,  226 
work  in  Repair  Shop,  195 

Inter-departmental  memoranda  con- 
cerning investigations,  11 

Interest  in  work,  136 

Investigation    of    the    Taylor 
System,  9-30 

*    Direction  of  investigation,  9 
Extract    from    Doctor    Taylors 
writings,  26 


Inter  -  departmental  memoranda 

and  correspondence,  10 
Main  features,  17 
Procedure  of  installation,  17 
Visit  to  Tabor  Mfg.  Co.  plant,  20 

The  Questionnaire,  20 
Investigation  of  worker's  complaint, 

178 
Investment,  company's,  157 

workers'.  157 
Issuance  oi  jobs  in  Repair  Shop,  196 

Job  card  for  Repair  Shop,  194 
for  Small  Parts  Factory,  201 
used  by  H.  H.  Franklin  Mfg.  Co., 
218 

Job  order,  60 

Labor,  peak  load  of,  131 
reduced  turnover  of,  130 

Labor  and  fixed  charge  cost,  104 

Labor  turnover  in  1908,  4 

Ledgers,  Stores,  54 

Legitimate    causes    for    change    in 
equity  ratio,  157 

Literature  on  Doctor  Taylor  s  Sys- 
tem, 9' 

Living  cost,  percentage  of  increase 
in,  89 

Living  costs  (daily),  summary  of, 

173 

Lot  quantity,  124 
size  determination  for  Plant  with 

Uniform  Manufacture,  214 
size  in  Plant  with  Uniform  Manu- 
facture, 210 
Lots,  65 
Loyalty  reward,  92 

Machine  burden  books,  59 
Machine-hour  burdens,  122 
Machines,  classification  of,  38 

selection  of,  59 
Main  clearing  house,  76 
Manager,  Production,  111 

Works,  111 
Managerial  weaknesses  in  1^8,  3 
Manufacture,  old  methods  of  super- 
vising, 120 

seven  classes  of,  126 
Manufacturing,  object  of,  155 

methods,  improvement  in,  119 
Margin,  155 


Material    stock    issue    for   Repair 

Shop,  194 
Materials,  classification  of,  35 
Measuring  tape,  calender,  67 

work-day,  67 
Mechanical  construction  of  Control 

Boards,  66 
Mechanical  methods,  standardiza- 
tion of,  40 
Menu  (workingman's),  average,  172 
Methods,  classification  of,  35 
Methods  of  manufacture,  revamp- 
ing, 128 
Mutual  Benefit  Association,  139 

Non-task,  or  straight  time,  work, 
percentage  of  time  spent  on, 
102 

Object  of  manufacturing,  155 

Old  methods  reviewed,  141 

Order    (manufacturing),   for   Small 

Parts  Factory,  200 
Order  Clerk's  duties  in  Plant  with 

Uniform  Manufacture,  226 
Order  procedure  in  Repair  Shop,  194 

Small  Parts  Factory,  202 
Orders   for   Small    Parts    Factory, 

sources  of,  199 
in  Repair  Shop,  193 
Organization  Classification, 

109-114 
Outside  vendor,  135 

Pattern  routing,  110 
Peak  load  of  labor,  131 
Percentage  allowance  for  processes, 
90 
of  increase  in  li-vang  cost,  89 
of  premium  earned,  94 
of  time  for  absence  or  lateness,  97 
of  time  on  non-task  work,  102 
of  time  under  task,  100 
Permanency  of  Control  Board  set- 
up, 74 
of  employment,  133 
of  rate  of  time  and  pay  under  the 
Taylor  System,  12 
Photographing  Control  Boards,  75 
Plan  of  manufacture,  63 
Planning  Department,  111 
Plant,  size  in  1908,  1 

size  in  1917,  29 
Plant  With  Uniform  Manufac- 
ture, 208-238 
Co-ordination  of  all  factors,  209 


Despatch  Clerk's  duties,  235 
Engineering  Department's  duties, 

212 
Engineering     Inspection     duties, 

212 
Erection  Clerk's  duties,  224 
Inspector  of  Records'  duties,  237 
Order  Clerk's  duties,  226 
Posting  Clerk's  duties,  233 
Route  Clerk's  duties,  229 
Routing  Section's  duties,  213 
Pneumatic  despatch  tube  system,  77 

tubes,  76 
Poor  work,  elimination  of,  118 
Posting  Clerk's  duties  in  Plant  with 

Uniform  Manufacture,  233 
Premium  earned,  percentage  of,  94 
Premium  system,  former,  95 
Premium  task  time,  standard,  97 
Preparation  of  master  sheet  for  Con- 
trol Board  schedule  tapje,  221 
Problem   of   automobile   manufac- 
ture, 4 
Procedure     in     despatching     shop 
orders,  60 
in  installation  of  Taylor  System, 
17 
Procedure   (order)   in  Small  Parts 

factory,  202 
Process  class  of  work  rates,  170 
Produce  Section,  113 
Producing  hours,  reduction  in,  151 

time,  41 
Product,  classification  of,  33 

improvement  and  uniformity  of, 
119 
Product  and  method,  changes  in, 

115 
Production  and  Employment  under 
Scientific  Management,  increase 
in,  148 
Production    cost    imder    Scientific 

Management,  decrease  in,  153 
Production  Department,  110 

Building  and  equipment  section, 

112 
Employment  section,  112 
Routing  and  Equipment  for  pro- 
duction section.  111 
Schedule  section,  111 
Production  in  1908,  2 
in  July,  1917,  29 
curve,  64 
Manager,  111 
Productivity,  crest  of,  148 


244 


INDEX 


Proportional  division  of  benefits,  158 
Promotion,  83  ,     j.      •        e 

Purchase  times,  standardization  ot, 

56 

Purchasing  Department,  effect  of 
changed  conditions  on,  142 

Purchasing  Department's  co-opera- 
tion, 144 

Quantity  block,  222 
Quantities  of  product,  126 
(Quarterly  wage  rate  adjustment,  84 

Rate  formula,  84  ,         •      ^o 

Allowance  for  years  of  service,  9^ 
Coefficient,  85 

Co-operation  and  conduct,  102 
Correction  for  spoiled  work,  98 
Fixed  charges  rate,  92 
Fundamental  base  rate,  88 
Labor  and  fixed  charge  cost,  104 
Percentage    allowance    for    pro- 
cesses, 90 

of  increase  in  Uving  cost,  89 
of  premium  earned,  94 
of  time  for  absence  or  lateness,  97 
of  time  spent  on  straight  time 

work,  102 
of  time  spent  under  task,  100 
Standard  premium  task  time,  97 
Time  taken  to  do  work,  104 
Rates,  process  class  of  work,  170 
Rates  (base),  work  and  department, 

171 

Recalculation   of   a   Workers 

Rating,  176-179 
Recognition  of  a  workers  skdl,  83 
Records  in  Repair  Shop,  194 

in  Small  Parts  Factory,  206      ^ 
Reduced  stores  investment  with  in- 
creased production,  144 
turnover  of  labor,  130 
Reducing  factor,  222 
Reduction  in  producing  hours,  151 

in  variety  of  product,  116 
Regularity  of  wage  increase  under 

Scientific  Management,  150 
Relative  Cost  of  Living,  172-175 
Relative  turnover  of  labor,  132 
Reorganization  of  Repair  Shop,  192 
Repair   Shop,    Scientific   Manage- 
ment for,  190-198  . 
Conditions  prior  to  installation  of 
Scientific  Management,  190 


Reorganization,  192 

Results  of  reorganization,  197 
Requisition  block,  223 
Re-scheduling  in  Small  Parts  Fac- 
tory, 205 
Responsibilities  of  the  management, 

83 
Results  Graphically  Depicted, 

147-162 
Average  hourly  rate,  1908-1917, 

150 
Decrease  in  production  cost,  153 
Division  of  "benefits,"  156 
Expansion  in  1916,  161 
Growth  and  activity,  147 
Production  and  employment,  148 
Reduction  in  producing  hours,  151 
Results  of  reorganization  of  Repair 

Shop,  197 
Results  under  new  management,  141 
Retarding    work    by    the    Control 

Boams,  74 
Right  of  appeal,  82 
Route  Clerk's  duties  in  Plant  with 

Uniform  Manufacture,  229 
Route  patterns,  1 10 
Route  sheet  for  Small  Parts  Factory, 

200 
Routing,  187  ^  ^ 

Routing  and  equipment  for  produc- 
tion section.  111 
Routing  of  work  and  materials,  57 
Routing  Section's  duties  in  Plant 
with    Uniform    Manufacture, 

213 

Revamping  methods  of  manufac- 
ture, 128 

Reward  for  loyalty,  92 

Safety  appliances,  effect  of,  138 
Schedule,  Control  Boards  and 
Pneumatic  Despatch  Tubes, 
63-78 
Schedule,  specification  of ,  63 
accelerating  production,  64 
for  Repair  Shop,  194 
diagram  for  Plant  with  Uniform 

Manufacture,  209 
section.  111 
tape,  67 
Scheduling,  187  ^       , 

Scientific  Management,  groundwork 

of,  82 
Seasonal  activity,  148 
Segregation  of  departments,  48 


INDEX 


245 


Selection  of  industries  for  a  com- 
munity, 131 
of  machines,  59 
Shelter  for  workers,  172 
Shop  requirements  under  the  Tay- 
lor System,  12 
Small  Parts  Factory,   Scientific 

Management  for,  19i9-207 
Sources  of  orders  for  Small  Parts 

Factory,  199 
Spoiled  work,  correction  for,  98 
Sponges,  classification  of,  52 
Spring  symbol,  50 
Standard  premium  task  time,  97 
Standard  stores  time,  71 
Standardizationoffactorymachinery 
and  fixtures,  57 
of  mechanical  methods,  40 
Allowance  time,  41 
Basis  of  Control  Boards,  41 
Procedure,  40 
Producing  time,  41 
of  purchase  times,  56 
of  tools,  42 
Statements  by  Employees,  180- 

182 
Stock  bin  tags,  54 
Stock  tag  for  Small  Parts  Factory, 

201 
Store  and  transport  section,  114 
Stores  issues  for  Small  Parts  Fac- 
tory, 201 
Stores  ledgers,  54 

for  Small  Parts  Factory,  199 
Storerooms,  54 

arrangement  of  materials  in,  36 
Storeroom  employee's  responsibili- 
ties, 55 
Suggestions  for  workmen,  137 
Summary  of  daily  living  costs,  173 
Supervising  manufacture,  old  meth- 
ods of,  120 
Suspensions,  80 
Symbols,  49 
Symbohzation  of  spring,  50 


Tabor  Mfg.  Co  's  product,  19 
Tag,  stock  bin,  54 
Tardiness,  penalty  for,  97 


Task,  daHy,  123 

fitness  for  a,  137 

percentage  of  time  under,  100 
Task  time,  standard  premium,  97 
Taylor  System,  17 

Adaptability  of,  129 

Main  features  of,  18 

of  Scientific  Management  defined, 
31 

Procedure  for  installation  of,  17 
Time  requirements  established,  116 

taken  to  do  work,  104 
Tool  lists,  60 

Tools,  standardization  of,  42 
Transference  of  workers,  80 
Transportation  section,  114 
Turnover  of  labor,  reduced,  130 

relative,  132 

Unclassified  stores,  54 

Variety  of  product,  reduction  in,  1 16 
Variety  stores,  classification  of,  51 
Vendor,  outside,  135 

Wage  (average  hourly),  1908-1917, 
150 

increase,  1908-1917,  29 

increase  under  Scientific  Manage- 
ment, regularity  of,  15Q 
Wage  rate  adjustment,  quarterly,  84 
Wages,  increased,  134 
Work,  time  taken  to  do,  104 
Work  and  department  base  rates. 

171 
Work  spoiled,  correction  for,  98 
Work-day  calendar  tape,  67 

measuring  tape,  67 
Worked  material  inspection,  110 
Worker's  complaint,  177 

rating,  recalculation  of,  176 
Workingman's  family,  average,  172 
Workingman's  responsibilities  under 
Scientific  Management,  11 

Penalties,  11 

Rewards,  11 
Workers'  investment,  157 
Works  Manager,  110 

Years  of  service,  allowance  for,  92 


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